Date Log
Submitted
13 January 2023
Accepted
2 June 2023
Published
20 June 2023
The Ramification of Prestigious Underwriters, IPO Pricing Method, and Institutional Allocation on Indonesia IPO Underpricing during 2010-2021
Corresponding Author(s) : Sukmawati Sukamulja
Jurnal Minds: Manajemen Ide dan Inspirasi,
Vol. 10 No. 1 (2023): June
Abstract
This research analyses how prestigious underwriters, IPO pricing, and share allocations shape IPO underpricing in Indonesia. 359 out of 406 Indonesian companies in the period 2010-2021 were underpriced on the first day of trading, noting the importance of investigating the rationale behind the underpricing phenomenon, which proliferates in the finance literature. This study examines the degree of IPO underpricing after the period post-Global Financial Crisis and the outbreak of COVID-19. This research found that the mean of underpricing amounted to 36,77% in 2010-2021. Prestigious underwriters have been proven significantly squeeze the level of underpricing vis-à-vis non-prestigious underwriters. Moreover, the research found that most institutional investors get disproportionately higher shares of the issuing companies. The finding signifies the lucrative capital gain for investors to pursue on the first day of trading.
Keywords
IPO Underpricing
Prestigious Underwriters
IPO Pricing
Share Allocations
Sembiring, J., & Sukamulja, S. (2023). The Ramification of Prestigious Underwriters, IPO Pricing Method, and Institutional Allocation on Indonesia IPO Underpricing during 2010-2021. Jurnal Minds: Manajemen Ide Dan Inspirasi, 10(1), 187–204. https://doi.org/10.24252/minds.v10i1.35256
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References
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Aggarwal, R., Prabhala, N. R., & Puri, M. (2002). “Institutional allocation in initial public offerings: Empirical evidence.” In Journal of Finance (Vol. 57, Issue 3). doi: 10.1111/1540-6261.00465
Aggarwal, R., & Rivoli, P. (1990). “Fads in the initial public offering market?” Financial Management, 19(4), 45. doi: 10.2307/3665609
Ahmad, I., Ismail, I., & Shaharuddin, S. S. (2021). “Predictive role of ex-ante strategic firm characteristics for Sustainable Initial Public Offering (IPO) survival.” Sustainability, 13(14), 8063. doi: 10.3390/su13148063
Albada, A., & Yong, O. (2020). “A review of IPO under-pricing phenomenon in Asia.” International Journal of Banking and Finance. doi: 10.32890/ijbf2019.14.0.9909
Benveniste, L.M., and Paul A. Spindt. (1989). “How Investment Bankers Determine the Offer Price and Allocation of New Issues.” Journal of Financial Economics, 24(2), 343-361. doi: 10.1016/0304-405X(89)90051-2.
Booth, J. R., & Smith, R. L. (1986). “Capital raising, underwriting and the certification hypothesis.” Journal of Financial Economics, 15(1–2). doi: 10.1016/0304-405X(86)90057-7
Carter, Richard, and Steven Manaster (1990). “Initial Public Offerings and Underwriter Reputation.” The Journal of Finance 45(4), 1045-1067. doi: 10.1111/j.1540-6261.1990.tb02426.x.
Castilho, H. A. de S. F., Resende, M. S. de, Montoro, E. R. de O. F., Shotoko, V. A. D. A., Jucá, M. N., & Junior, E. H. (2019). “Investment funds and underpricing of shares.” Revista de Gestao, 26(4). doi: 10.1108/REGE-12-2018-0121
Cheung, Y.-leung, Dai, Y., Ouyang, Z., & Tan, W. (2018). “Who leaves money on the table? the role of founder identity in Hong Kong.” Applied Economics, 50(7), 774–788. doi: 10.1080/00036846.2017.1340577
Darmadi, Salim, and Randy Gunawan. (2013). “Underpricing, Board Structure, and Ownership: An Empirical Examination of Indonesian IPO Firms.” Managerial Finance 39 No. 2, pp. 181-200. doi: 10.1108/03074351311294016.
Eka Yuyan, F., Adrianto, F., & Hamidi, M. (2022). “Determinants of long-term performance of Initial Public Offering: Evidence from Indonesia Stock Exchange.” Journal of World Science, 1(10), 864–882. doi: 10.36418/jws.v1i10.111
Gumanti, Tatang Ary, Ayu Retsi Lestari, and Siti Sofiyah Abdul Mannan. (2017). “Underpricing and Number of Risk Factors of Initial Public Offerings in Indonesia.” Business: Theory and Practice, 18, 178-185 doi: 10.3846/btp.2017.019.
Hanafi, M. M. (2016). “Analysis of IPO Underpricing Fluctuation: Empirical Study in Indonesia Stock Exchange.” Jurnal Dinamika Manajemen 7(2). doi: 10.15294/jdm.v7i2.8197.
Hanafi, M. M., & Setiawan, A. (2018). “Ownership concentration, institutional ownership, and IPO underpricing: Evidence from Indonesia Stock Exchange.” International Journal of Governance and Financial Intermediation, 1(1), 3. doi: 10.1504/ijgfi.2018.10012597
Hanley, K. W. (1993). “The Underpricing of Initial Public Offerings and the Partial Adjustment Phenomenon.” Journal of Financial Economics 34(2), 231-250. doi: 10.1016/0304-405X(93)90019-8.
Hawaldar, I. T., K.R., N. K., & Mallikarjunappa, T. (2018). “Pricing and performance of ipos: Evidence from indian stock market.” SSRN Electronic Journal. doi: 10.2139/ssrn.3504459
Husnan, S., Hanafi M.M., & Munandar, M. (2015). “Price Stabilization and IPO Underpricing: An Empirical Study in The Indonesian Stock Exchange” Journal of Indonesian Economy and Business, 29(2). doi: 10.22146/jieb.v29i2.6205.
La Rocca, T. (2021). “Do prestigious underwriters shape IPO pricing? A meta-analytic review.” In Review of Managerial Science (Vol. 15, Issue 3). doi: 10.1007/s11846-019-00356-1
Liu, Y., Cheng, P., Ouyang, Z., & Wang, A. (2020). “Information Asymmetry and Investor Valuations of Initial Public Offerings: Two Dimensions of Organizational Reputation as Stock Market Signals.” Management and Organization Review, 16(4). doi: 10.1017/mor.2019.28
Leland, and Pyle. (1977). “Informational Asymmetries, Financial Structure, and Financial Intermediation.” The Journal of Finance, 32(2), 371-387.
Loughran, Tim, and Jay R. Ritter. (2002). “Why Don’t Issuers Get Upset about Leaving Money on the Table in IPOs?” Review of Financial Studies, 15(2SPEC), 413–443. doi: 10.1093/rfs/15.2.413
Michaely, Roni, and Wayne H. Shaw. (1994). “The Pricing of Initial Public Offerings: Tests of Adverse-Selection and Signaling Theories.” Review of Financial Studies 7(2), 279-319. doi: 10.1093/rfs/7.2.279.
Miller, E. M. (1977). “Risk, uncertainty, and divergence of opinion.” The Journal of Finance, 32(4), 1151–1168. doi: 10.1111/j.1540-6261.1977.tb03317.x
Nasution, A. A., & Mutasowifin, A. (2021). “Impact of macroeconomic factors on underpricing: Case of indonesia stock exchange.” InFestasi, 17(2). doi: 10.21107/infestasi.v17i2.11929
Ong, Chui Zi, Rasidah Mohd-Rashid, and Kamarun Nisham Taufil-Mohd. (2020). “Underwriter Reputation and IPO Valuation in an Emerging Market: Evidence from Malaysia.” Managerial Finance 46(10), 1283-1304. doi: 10.1108/MF-11-2019-0579.
Rathnayake, D. N., Zhang, Z., Yang, B., & Louembé, P. A. (2022). “The aftermarket performance of Initial Public Offerings: New Evidence from an emerging market.” PLOS ONE, 17(8). doi: 10.1371/journal.pone.0272092
Ritter, J. R. (1984). “Signaling and the Valuation of Unseasoned New Issues: A Comment.” In The Journal of Finance (Vol. 39, Issue 4). doi: 10.1111/j.1540-6261.1984.tb03907.x
Rock, K. (1986). “Why new issues are underpriced.” Journal of Financial Economics, 15(1–2). doi: 10.1016/0304-405X(86)90054-1
La Rocca, T. (2021). “Do Prestigious Underwriters Shape IPO Pricing? A Meta-Analytic Review.” Review of Managerial Science. Springer Science and Business Media Deutschland GmbH. doi: 10.1007/s11846-019-00356-1
Setya, V. A., Supriani, I., & Fianto, B. A. (2020). “Determinants of underpricing in Islamic and Non-Islamic shares on IPO.” Shirkah: Journal of Economics and Business, 5(1), 70. doi: 10.22515/shirkah.v5i1.276
Sochi, M. H., & Islam, R. (2018). “What impacts IPO underpricing? evidence from Dhaka Stock Exchange.” International Journal of Business and Management, 13(3), 88. doi: 10.5539/ijbm.v13n3p88
Stiglitz, J. E. (2000). “The contributions of the economics of information to twentieth century economics.” Quarterly Journal of Economics 115(4), 1441-1478. doi: 10.1162/003355300555015.
Stoughton, N. M., & Zechner, J. (1998). “IPO-mechanisms, monitoring and ownership structure.” Journal of Financial Economics, 49(1). doi.org: 10.1016/s0304-405x(98)00017-8
Sundarasen, S., Kamaludin, K., Ibrahim, I., Rajagopalan, U., & Danila, N. (2021). “Auditors, underwriters, and firm owners’ interaction in an IPO environment: The case of OECD Nations.” Sustainability, 13(11), 6281. doi: 10.3390/su13116281
Utamaningsih, A., Eduardus Tandelilin, Suad Husnan, and Agus R. Santoso. (2013) “Asymmetric Information in the IPO Underwriting Process on the Indonesia Stock Exchange: Pricing, Initial Allocation, Underpricing, and Price Stabilization.” Journal of Indonesian Economy and Business 28(3), 311-321.
Widarjo, W., Rahmawati, Bandi, & Widagdo, A. K. (2019). “Underpricing and intellectual capital disclosure: Evidence from Indonesia.” Global Business Review, 146575031985701. doi: 10.1177/1465750319857017
Widianti, Novi Wulandari, and Ferdyan Dwi Kusuma (2013). “Analisis Informasi Akuntansi Dan Non Akuntansi Terhadap Initial Return Saham Pada Perusahaan Yang Melakukan IPO Di Bursa Efek Indonesia.” Simposium Nasional Akuntansi XVI I, 568-600.
Yi, H. J. (1992). “Information risk and long-run performance of Initial Public Offerings.” doi: 10.1007/978-3-8349-8117-2
Özyeşil, M. (2022). “Underpricing anomaly in initial public offerings: A research on 2021 initial public offerings performed in Borsa Istanbul.” Business & Management Studies: An International Journal, 10(1). doi: 10.15295/bmij.v10i1.1981
References
Aggarwal, R., Prabhala, N. R., & Puri, M. (2002). “Institutional allocation in initial public offerings: Empirical evidence.” In Journal of Finance (Vol. 57, Issue 3). doi: 10.1111/1540-6261.00465
Aggarwal, R., & Rivoli, P. (1990). “Fads in the initial public offering market?” Financial Management, 19(4), 45. doi: 10.2307/3665609
Ahmad, I., Ismail, I., & Shaharuddin, S. S. (2021). “Predictive role of ex-ante strategic firm characteristics for Sustainable Initial Public Offering (IPO) survival.” Sustainability, 13(14), 8063. doi: 10.3390/su13148063
Albada, A., & Yong, O. (2020). “A review of IPO under-pricing phenomenon in Asia.” International Journal of Banking and Finance. doi: 10.32890/ijbf2019.14.0.9909
Benveniste, L.M., and Paul A. Spindt. (1989). “How Investment Bankers Determine the Offer Price and Allocation of New Issues.” Journal of Financial Economics, 24(2), 343-361. doi: 10.1016/0304-405X(89)90051-2.
Booth, J. R., & Smith, R. L. (1986). “Capital raising, underwriting and the certification hypothesis.” Journal of Financial Economics, 15(1–2). doi: 10.1016/0304-405X(86)90057-7
Carter, Richard, and Steven Manaster (1990). “Initial Public Offerings and Underwriter Reputation.” The Journal of Finance 45(4), 1045-1067. doi: 10.1111/j.1540-6261.1990.tb02426.x.
Castilho, H. A. de S. F., Resende, M. S. de, Montoro, E. R. de O. F., Shotoko, V. A. D. A., Jucá, M. N., & Junior, E. H. (2019). “Investment funds and underpricing of shares.” Revista de Gestao, 26(4). doi: 10.1108/REGE-12-2018-0121
Cheung, Y.-leung, Dai, Y., Ouyang, Z., & Tan, W. (2018). “Who leaves money on the table? the role of founder identity in Hong Kong.” Applied Economics, 50(7), 774–788. doi: 10.1080/00036846.2017.1340577
Darmadi, Salim, and Randy Gunawan. (2013). “Underpricing, Board Structure, and Ownership: An Empirical Examination of Indonesian IPO Firms.” Managerial Finance 39 No. 2, pp. 181-200. doi: 10.1108/03074351311294016.
Eka Yuyan, F., Adrianto, F., & Hamidi, M. (2022). “Determinants of long-term performance of Initial Public Offering: Evidence from Indonesia Stock Exchange.” Journal of World Science, 1(10), 864–882. doi: 10.36418/jws.v1i10.111
Gumanti, Tatang Ary, Ayu Retsi Lestari, and Siti Sofiyah Abdul Mannan. (2017). “Underpricing and Number of Risk Factors of Initial Public Offerings in Indonesia.” Business: Theory and Practice, 18, 178-185 doi: 10.3846/btp.2017.019.
Hanafi, M. M. (2016). “Analysis of IPO Underpricing Fluctuation: Empirical Study in Indonesia Stock Exchange.” Jurnal Dinamika Manajemen 7(2). doi: 10.15294/jdm.v7i2.8197.
Hanafi, M. M., & Setiawan, A. (2018). “Ownership concentration, institutional ownership, and IPO underpricing: Evidence from Indonesia Stock Exchange.” International Journal of Governance and Financial Intermediation, 1(1), 3. doi: 10.1504/ijgfi.2018.10012597
Hanley, K. W. (1993). “The Underpricing of Initial Public Offerings and the Partial Adjustment Phenomenon.” Journal of Financial Economics 34(2), 231-250. doi: 10.1016/0304-405X(93)90019-8.
Hawaldar, I. T., K.R., N. K., & Mallikarjunappa, T. (2018). “Pricing and performance of ipos: Evidence from indian stock market.” SSRN Electronic Journal. doi: 10.2139/ssrn.3504459
Husnan, S., Hanafi M.M., & Munandar, M. (2015). “Price Stabilization and IPO Underpricing: An Empirical Study in The Indonesian Stock Exchange” Journal of Indonesian Economy and Business, 29(2). doi: 10.22146/jieb.v29i2.6205.
La Rocca, T. (2021). “Do prestigious underwriters shape IPO pricing? A meta-analytic review.” In Review of Managerial Science (Vol. 15, Issue 3). doi: 10.1007/s11846-019-00356-1
Liu, Y., Cheng, P., Ouyang, Z., & Wang, A. (2020). “Information Asymmetry and Investor Valuations of Initial Public Offerings: Two Dimensions of Organizational Reputation as Stock Market Signals.” Management and Organization Review, 16(4). doi: 10.1017/mor.2019.28
Leland, and Pyle. (1977). “Informational Asymmetries, Financial Structure, and Financial Intermediation.” The Journal of Finance, 32(2), 371-387.
Loughran, Tim, and Jay R. Ritter. (2002). “Why Don’t Issuers Get Upset about Leaving Money on the Table in IPOs?” Review of Financial Studies, 15(2SPEC), 413–443. doi: 10.1093/rfs/15.2.413
Michaely, Roni, and Wayne H. Shaw. (1994). “The Pricing of Initial Public Offerings: Tests of Adverse-Selection and Signaling Theories.” Review of Financial Studies 7(2), 279-319. doi: 10.1093/rfs/7.2.279.
Miller, E. M. (1977). “Risk, uncertainty, and divergence of opinion.” The Journal of Finance, 32(4), 1151–1168. doi: 10.1111/j.1540-6261.1977.tb03317.x
Nasution, A. A., & Mutasowifin, A. (2021). “Impact of macroeconomic factors on underpricing: Case of indonesia stock exchange.” InFestasi, 17(2). doi: 10.21107/infestasi.v17i2.11929
Ong, Chui Zi, Rasidah Mohd-Rashid, and Kamarun Nisham Taufil-Mohd. (2020). “Underwriter Reputation and IPO Valuation in an Emerging Market: Evidence from Malaysia.” Managerial Finance 46(10), 1283-1304. doi: 10.1108/MF-11-2019-0579.
Rathnayake, D. N., Zhang, Z., Yang, B., & Louembé, P. A. (2022). “The aftermarket performance of Initial Public Offerings: New Evidence from an emerging market.” PLOS ONE, 17(8). doi: 10.1371/journal.pone.0272092
Ritter, J. R. (1984). “Signaling and the Valuation of Unseasoned New Issues: A Comment.” In The Journal of Finance (Vol. 39, Issue 4). doi: 10.1111/j.1540-6261.1984.tb03907.x
Rock, K. (1986). “Why new issues are underpriced.” Journal of Financial Economics, 15(1–2). doi: 10.1016/0304-405X(86)90054-1
La Rocca, T. (2021). “Do Prestigious Underwriters Shape IPO Pricing? A Meta-Analytic Review.” Review of Managerial Science. Springer Science and Business Media Deutschland GmbH. doi: 10.1007/s11846-019-00356-1
Setya, V. A., Supriani, I., & Fianto, B. A. (2020). “Determinants of underpricing in Islamic and Non-Islamic shares on IPO.” Shirkah: Journal of Economics and Business, 5(1), 70. doi: 10.22515/shirkah.v5i1.276
Sochi, M. H., & Islam, R. (2018). “What impacts IPO underpricing? evidence from Dhaka Stock Exchange.” International Journal of Business and Management, 13(3), 88. doi: 10.5539/ijbm.v13n3p88
Stiglitz, J. E. (2000). “The contributions of the economics of information to twentieth century economics.” Quarterly Journal of Economics 115(4), 1441-1478. doi: 10.1162/003355300555015.
Stoughton, N. M., & Zechner, J. (1998). “IPO-mechanisms, monitoring and ownership structure.” Journal of Financial Economics, 49(1). doi.org: 10.1016/s0304-405x(98)00017-8
Sundarasen, S., Kamaludin, K., Ibrahim, I., Rajagopalan, U., & Danila, N. (2021). “Auditors, underwriters, and firm owners’ interaction in an IPO environment: The case of OECD Nations.” Sustainability, 13(11), 6281. doi: 10.3390/su13116281
Utamaningsih, A., Eduardus Tandelilin, Suad Husnan, and Agus R. Santoso. (2013) “Asymmetric Information in the IPO Underwriting Process on the Indonesia Stock Exchange: Pricing, Initial Allocation, Underpricing, and Price Stabilization.” Journal of Indonesian Economy and Business 28(3), 311-321.
Widarjo, W., Rahmawati, Bandi, & Widagdo, A. K. (2019). “Underpricing and intellectual capital disclosure: Evidence from Indonesia.” Global Business Review, 146575031985701. doi: 10.1177/1465750319857017
Widianti, Novi Wulandari, and Ferdyan Dwi Kusuma (2013). “Analisis Informasi Akuntansi Dan Non Akuntansi Terhadap Initial Return Saham Pada Perusahaan Yang Melakukan IPO Di Bursa Efek Indonesia.” Simposium Nasional Akuntansi XVI I, 568-600.
Yi, H. J. (1992). “Information risk and long-run performance of Initial Public Offerings.” doi: 10.1007/978-3-8349-8117-2
Özyeşil, M. (2022). “Underpricing anomaly in initial public offerings: A research on 2021 initial public offerings performed in Borsa Istanbul.” Business & Management Studies: An International Journal, 10(1). doi: 10.15295/bmij.v10i1.1981
Aggarwal, R., & Rivoli, P. (1990). “Fads in the initial public offering market?” Financial Management, 19(4), 45. doi: 10.2307/3665609
Ahmad, I., Ismail, I., & Shaharuddin, S. S. (2021). “Predictive role of ex-ante strategic firm characteristics for Sustainable Initial Public Offering (IPO) survival.” Sustainability, 13(14), 8063. doi: 10.3390/su13148063
Albada, A., & Yong, O. (2020). “A review of IPO under-pricing phenomenon in Asia.” International Journal of Banking and Finance. doi: 10.32890/ijbf2019.14.0.9909
Benveniste, L.M., and Paul A. Spindt. (1989). “How Investment Bankers Determine the Offer Price and Allocation of New Issues.” Journal of Financial Economics, 24(2), 343-361. doi: 10.1016/0304-405X(89)90051-2.
Booth, J. R., & Smith, R. L. (1986). “Capital raising, underwriting and the certification hypothesis.” Journal of Financial Economics, 15(1–2). doi: 10.1016/0304-405X(86)90057-7
Carter, Richard, and Steven Manaster (1990). “Initial Public Offerings and Underwriter Reputation.” The Journal of Finance 45(4), 1045-1067. doi: 10.1111/j.1540-6261.1990.tb02426.x.
Castilho, H. A. de S. F., Resende, M. S. de, Montoro, E. R. de O. F., Shotoko, V. A. D. A., Jucá, M. N., & Junior, E. H. (2019). “Investment funds and underpricing of shares.” Revista de Gestao, 26(4). doi: 10.1108/REGE-12-2018-0121
Cheung, Y.-leung, Dai, Y., Ouyang, Z., & Tan, W. (2018). “Who leaves money on the table? the role of founder identity in Hong Kong.” Applied Economics, 50(7), 774–788. doi: 10.1080/00036846.2017.1340577
Darmadi, Salim, and Randy Gunawan. (2013). “Underpricing, Board Structure, and Ownership: An Empirical Examination of Indonesian IPO Firms.” Managerial Finance 39 No. 2, pp. 181-200. doi: 10.1108/03074351311294016.
Eka Yuyan, F., Adrianto, F., & Hamidi, M. (2022). “Determinants of long-term performance of Initial Public Offering: Evidence from Indonesia Stock Exchange.” Journal of World Science, 1(10), 864–882. doi: 10.36418/jws.v1i10.111
Gumanti, Tatang Ary, Ayu Retsi Lestari, and Siti Sofiyah Abdul Mannan. (2017). “Underpricing and Number of Risk Factors of Initial Public Offerings in Indonesia.” Business: Theory and Practice, 18, 178-185 doi: 10.3846/btp.2017.019.
Hanafi, M. M. (2016). “Analysis of IPO Underpricing Fluctuation: Empirical Study in Indonesia Stock Exchange.” Jurnal Dinamika Manajemen 7(2). doi: 10.15294/jdm.v7i2.8197.
Hanafi, M. M., & Setiawan, A. (2018). “Ownership concentration, institutional ownership, and IPO underpricing: Evidence from Indonesia Stock Exchange.” International Journal of Governance and Financial Intermediation, 1(1), 3. doi: 10.1504/ijgfi.2018.10012597
Hanley, K. W. (1993). “The Underpricing of Initial Public Offerings and the Partial Adjustment Phenomenon.” Journal of Financial Economics 34(2), 231-250. doi: 10.1016/0304-405X(93)90019-8.
Hawaldar, I. T., K.R., N. K., & Mallikarjunappa, T. (2018). “Pricing and performance of ipos: Evidence from indian stock market.” SSRN Electronic Journal. doi: 10.2139/ssrn.3504459
Husnan, S., Hanafi M.M., & Munandar, M. (2015). “Price Stabilization and IPO Underpricing: An Empirical Study in The Indonesian Stock Exchange” Journal of Indonesian Economy and Business, 29(2). doi: 10.22146/jieb.v29i2.6205.
La Rocca, T. (2021). “Do prestigious underwriters shape IPO pricing? A meta-analytic review.” In Review of Managerial Science (Vol. 15, Issue 3). doi: 10.1007/s11846-019-00356-1
Liu, Y., Cheng, P., Ouyang, Z., & Wang, A. (2020). “Information Asymmetry and Investor Valuations of Initial Public Offerings: Two Dimensions of Organizational Reputation as Stock Market Signals.” Management and Organization Review, 16(4). doi: 10.1017/mor.2019.28
Leland, and Pyle. (1977). “Informational Asymmetries, Financial Structure, and Financial Intermediation.” The Journal of Finance, 32(2), 371-387.
Loughran, Tim, and Jay R. Ritter. (2002). “Why Don’t Issuers Get Upset about Leaving Money on the Table in IPOs?” Review of Financial Studies, 15(2SPEC), 413–443. doi: 10.1093/rfs/15.2.413
Michaely, Roni, and Wayne H. Shaw. (1994). “The Pricing of Initial Public Offerings: Tests of Adverse-Selection and Signaling Theories.” Review of Financial Studies 7(2), 279-319. doi: 10.1093/rfs/7.2.279.
Miller, E. M. (1977). “Risk, uncertainty, and divergence of opinion.” The Journal of Finance, 32(4), 1151–1168. doi: 10.1111/j.1540-6261.1977.tb03317.x
Nasution, A. A., & Mutasowifin, A. (2021). “Impact of macroeconomic factors on underpricing: Case of indonesia stock exchange.” InFestasi, 17(2). doi: 10.21107/infestasi.v17i2.11929
Ong, Chui Zi, Rasidah Mohd-Rashid, and Kamarun Nisham Taufil-Mohd. (2020). “Underwriter Reputation and IPO Valuation in an Emerging Market: Evidence from Malaysia.” Managerial Finance 46(10), 1283-1304. doi: 10.1108/MF-11-2019-0579.
Rathnayake, D. N., Zhang, Z., Yang, B., & Louembé, P. A. (2022). “The aftermarket performance of Initial Public Offerings: New Evidence from an emerging market.” PLOS ONE, 17(8). doi: 10.1371/journal.pone.0272092
Ritter, J. R. (1984). “Signaling and the Valuation of Unseasoned New Issues: A Comment.” In The Journal of Finance (Vol. 39, Issue 4). doi: 10.1111/j.1540-6261.1984.tb03907.x
Rock, K. (1986). “Why new issues are underpriced.” Journal of Financial Economics, 15(1–2). doi: 10.1016/0304-405X(86)90054-1
La Rocca, T. (2021). “Do Prestigious Underwriters Shape IPO Pricing? A Meta-Analytic Review.” Review of Managerial Science. Springer Science and Business Media Deutschland GmbH. doi: 10.1007/s11846-019-00356-1
Setya, V. A., Supriani, I., & Fianto, B. A. (2020). “Determinants of underpricing in Islamic and Non-Islamic shares on IPO.” Shirkah: Journal of Economics and Business, 5(1), 70. doi: 10.22515/shirkah.v5i1.276
Sochi, M. H., & Islam, R. (2018). “What impacts IPO underpricing? evidence from Dhaka Stock Exchange.” International Journal of Business and Management, 13(3), 88. doi: 10.5539/ijbm.v13n3p88
Stiglitz, J. E. (2000). “The contributions of the economics of information to twentieth century economics.” Quarterly Journal of Economics 115(4), 1441-1478. doi: 10.1162/003355300555015.
Stoughton, N. M., & Zechner, J. (1998). “IPO-mechanisms, monitoring and ownership structure.” Journal of Financial Economics, 49(1). doi.org: 10.1016/s0304-405x(98)00017-8
Sundarasen, S., Kamaludin, K., Ibrahim, I., Rajagopalan, U., & Danila, N. (2021). “Auditors, underwriters, and firm owners’ interaction in an IPO environment: The case of OECD Nations.” Sustainability, 13(11), 6281. doi: 10.3390/su13116281
Utamaningsih, A., Eduardus Tandelilin, Suad Husnan, and Agus R. Santoso. (2013) “Asymmetric Information in the IPO Underwriting Process on the Indonesia Stock Exchange: Pricing, Initial Allocation, Underpricing, and Price Stabilization.” Journal of Indonesian Economy and Business 28(3), 311-321.
Widarjo, W., Rahmawati, Bandi, & Widagdo, A. K. (2019). “Underpricing and intellectual capital disclosure: Evidence from Indonesia.” Global Business Review, 146575031985701. doi: 10.1177/1465750319857017
Widianti, Novi Wulandari, and Ferdyan Dwi Kusuma (2013). “Analisis Informasi Akuntansi Dan Non Akuntansi Terhadap Initial Return Saham Pada Perusahaan Yang Melakukan IPO Di Bursa Efek Indonesia.” Simposium Nasional Akuntansi XVI I, 568-600.
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