The Role of Firm Age in Moderating the Effect of Underwriter Reputation and Firm Size on Underpricing in IPO Companies for the Period 2021-2024 (Moneta Jurnal Manajemen & Keuangan Syariah)

Summary

• Underpricing dominated Indonesian IPOs during 2021–2024 at 76.08% of companies, while overpricing accounted for 21.53% and fair pricing for 2.89%.p.4
• After excluding 45 overpricing companies, 5 fair price companies, and 24 companies with incomplete data, the final sample comprised 159 underpriced IPO companies.p.7
• The initial regression model (Model I) achieved an Adjusted R Square of 0.912, explaining 91.2% of the variance in IPO underpricing.p.11

Key insights

1. Underwriter reputation has no statistically significant partial effect on IPO underpricing (t = -1.770, sig. = 0.079).p.13
2. Firm size has a positive and significant effect on IPO underpricing (t = 37.383, sig. = 0.001).p.13
3. Firm age acts as a quasi-moderator that significantly strengthens the relationship between underwriter reputation and underpricing (coefficient 0.146, sig. = 0.004).p.13
4. Firm age does not moderate the effect of firm size on underpricing, acting as a homologizer with an insignificant interaction (coefficient -0.050, sig. = 0.844).p.13
5. Simultaneous regression testing for Model I confirmed that underwriter reputation, firm size, and firm age together significantly influence underpricing (F = 543.797, sig. = 0.001).p.12