Profitability, Financial Risk and Free Float on IPO Underpricing of Non-Financial Firms in Indonesia, with Underwriter Reputation as Moderator (EKOMA Jurnal Ekonomi Manajemen Akuntansi)

Summary

• The study covers 233 companies that made an IPO during 2021–2024, of which 155 formed the sample.p.7
• Average underpricing was 24.95%, meaning shares rose about 24.95% on the first trading day.p.9
• Underwriter reputation does not moderate the relationships; the moderation model has an R-squared of 0.081568, about 8% of the variation in underpricing.p.11
• Average free float was 19.77, while average financial risk was 176.69.p.9

Key insights

1. The number of IPOs fell by almost 48% in 2024 compared with the previous year.p.2
2. Financial risk has the widest data dispersion, with a mean of 176.69 and a standard deviation of 615.04.p.9
3. The White test (Prob. Chi-Square 0.0451) indicated heteroskedasticity, so HC1 robust standard errors were used.p.10
4. The interaction of free float and underwriter reputation is not significant (probability 0.6148).p.11