The Influence of ROA, ROE, DER, EPS, and Size on Stock Underpricing During Initial Public Offerings (IPOs) on the Indonesia Stock Exchange (Rekaman : Riset Ekonomi Bidang Akuntansi dan Manajemen)

Summary

• The study analyzes a sample of 11 companies that conducted initial public offerings on the Indonesia Stock Exchange in 2020 using purposive sampling.p.1
• The multiple linear regression equation yields a constant value of 144,572 for stock underpricing when all independent variables remain unchanged.p.6
• Return On Assets (ROA) demonstrates a regression coefficient of -607,288, indicating a negative relationship with IPO underpricing.p.6
• Return On Equity (ROE) has a coefficient of -456,308, showing that higher equity returns decrease underpricing levels.p.6
• Debt to Equity Ratio (DER) and Earning Per Share (EPS) show regression coefficients of 10,088 and 9,333, respectively.p.6
• Simultaneous F-test results produce an F value of 2,532 with a significance level of 0,001.p.8

Key insights

1. ROA has a statistically significant negative influence on stock underpricing with a p-value of 0,045.p.7
2. ROE significantly reduces IPO underpricing with a p-value of 0,024.p.7
3. DER exhibits a positive but statistically insignificant impact on underpricing with a p-value of 0,769.p.7
4. EPS shows a positive effect on stock underpricing that is not statistically significant at a p-value of 0,603.p.7
5. Firm size (SIZE) exerts a positive and statistically significant effect on underpricing with a p-value of 0,010.p.7
6. Combined financial performance and firm size variables significantly influence IPO underpricing with a test significance of 0,001.p.8