The Effect of Enterprise and Primary Market Metrics on Underpricing (International Journal of Management Science and Information Technology)

Summary

• The study analyzes a saturation sample of 146 companies that completed an IPO between 2023 and 2025 (page 1).p.1
• Multiple regression shows that company size significantly influences underpricing with a significance value of 0.000 (page 1).p.1
• Total IPO proceeds show a statistically significant effect on underpricing with a p-value of 0.003 (page 1).p.1
• Financial variables including sales growth (0.352), ROA (0.928), and DER (0.989) show no significant effect on underpricing (page 1).p.1

Key insights

1. Return on assets (ROA) has an insignificant effect on IPO underpricing with a significance level of 0.928.p.5
2. Debt-to-Equity Ratio (DER) displays no significant influence on IPO underpricing with a p-value of 0.989.p.5
3. Between 2020 and 2025, nearly 50% of all IPO shares studied were underpriced on their first day of trading.p.1