The Effect of Underwriter's Reputation, Auditor's Reputation, and Leverage on Underpricing with Concentrated Ownership As a Moderation Variable
Keywords:
Underwriter reputation;, auditor reputation, leverage, concentrated holdingsAbstract
The phenomenon of underpricing in Initial Public Offerings (IPOs) is still a major concern in the Indonesian capital market, especially in ensuring market efficiency and optimal investment decision-making. This study aims to analyze the influence of underwriter reputation, auditor reputation, and leverage on stock underpricing, with concentrated ownership as a moderation variable. This study uses a quantitative method with a descriptive and causal approach. The sample consisted of 363 companies that conducted IPOs on the Indonesia Stock Exchange (IDX) in 2011-2021, which were selected using the purposive sampling method. Secondary data is obtained through IPO prospectus documentation and stock price information from the official portals of IDX, TICMI, and e-bursa.com. Data analysis was carried out using moderation regression, with hypothesis testing through t-test at a significance level of 5%.
The results show that the underwriter's reputation and leverage do not have a significant effect on underpricing, while the auditor's reputation has a significant negative influence. Concentrated ownership does not function as a moderating variable in the relationship between independent variables and underpricing. The implications of this study provide insights for companies, underwriters, and regulators to pay more attention to auditor quality factors in the IPO process to improve transparency and efficiency of the capital market. This research also opens up opportunities for further exploration of other factors that affect underpricing in the Indonesian capital market.
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Copyright (c) 2024 Hasna Nur Afifah, Rosidi Rosidi, Djuni Farhan
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