Examining Underpricing in Initial Public Offering: Deepening Insights on Non-Financial Information

Rezky, Dikanio Muhammad; Mahri, A. Jajang W.; Utami, Suci Aprilliani

doi:10.15408/etk.v24i2.39355

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Examining Underpricing in Initial Public Offering: Deepening Insights on Non-Financial Information

ETIKONOMI · Vol. 24 No. 2 (2025)

DOI: 10.15408/etk.v24i2.39355
ISSN: 2461-0771, 1412-8969
Terbit: 2025-09-30
Penerbit: Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta
Bahasa: eng
Lisensi: creativecommons.org/licenses/by-sa/4.0

Abstrak

Research Originality: The nominal value variable from the prospectus in this study is the novelty, as no previous research has been found. Investors indicate the nominal value as a positive signal from the company to reduce existing information asymmetry. Research Objectives: This study examines the phenomenon of IPO underpricing on the Indonesia Stock Exchange, resulting in suboptimal IPO fund-raising. Research Method: Using a quantitative approach with descriptive and causality designs, the study analyzed 251 companies from 2017 to 2023 through multiple linear regression analysis. Empirical Results: Indonesia has a high IPO underpricing rate of 37.17%. Most IPOs (68.54%) were Shariah-compliant. The reputation of underwriters changed each year, and the free float ratio declined over time. On average, IPOs were oversubscribed by more than 28 times each year. Although COVID-19 affected market sentiment, it did not impact underpricing. The nominal value of IPO stocks varied each year but generally declined. Regression results show Shariah compliance and strong underwriters reduce underpricing, while higher free float, oversubscription, and nominal value increase it. Implications: The implications of this research theoretically support signaling theory and information asymmetry. Practically, this research can be a reference for further researchers, investors, companies, and the government as regulators. JEL Classification: G10, G24, G32, D82

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Sumber metadata: OAI-PMH (metadata jurnal) http://journal.uinjkt.ac.id/index.php/etikonomi/oai, pertama di-harvest 8 Nov 2026, terakhir terlihat 8 Nov 2026.

Metadata asli (oai_dc)

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	<dc:title xml:lang="en">Examining Underpricing in Initial Public Offering: Deepening Insights on Non-Financial Information</dc:title>
	<dc:creator xml:lang="en">Rezky, Dikanio Muhammad</dc:creator>
	<dc:creator xml:lang="en">Mahri, A. Jajang W.</dc:creator>
	<dc:creator xml:lang="en">Utami, Suci Aprilliani</dc:creator>
	<dc:subject xml:lang="en">initial public offering</dc:subject>
	<dc:subject xml:lang="en">underpricing</dc:subject>
	<dc:subject xml:lang="en">signaling</dc:subject>
	<dc:subject xml:lang="en">asymmetric information</dc:subject>
	<dc:subject xml:lang="en">public ownership</dc:subject>
	<dc:description xml:lang="en">Research Originality: The nominal value variable from the prospectus in this study is the novelty, as no previous research has been found. Investors indicate the nominal value as a positive signal from the company to reduce existing information asymmetry.
Research Objectives: This study examines the phenomenon of IPO underpricing on the Indonesia Stock Exchange, resulting in suboptimal IPO fund-raising.
Research Method: Using a quantitative approach with descriptive and causality designs, the study analyzed 251 companies from 2017 to 2023 through multiple linear regression analysis.
Empirical Results: Indonesia has a high IPO underpricing rate of 37.17%. Most IPOs (68.54%) were Shariah-compliant. The reputation of underwriters changed each year, and the free float ratio declined over time. On average, IPOs were oversubscribed by more than 28 times each year. Although COVID-19 affected market sentiment, it did not impact underpricing. The nominal value of IPO stocks varied each year but generally declined. Regression results show Shariah compliance and strong underwriters reduce underpricing, while higher free float, oversubscription, and nominal value increase it.
Implications: The implications of this research theoretically support signaling theory and information asymmetry. Practically, this research can be a reference for further researchers, investors, companies, and the government as regulators.
JEL Classification: G10, G24, G32, D82</dc:description>
	<dc:publisher xml:lang="en">Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta</dc:publisher>
	<dc:date>2025-09-30</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.uinjkt.ac.id/index.php/etikonomi/article/view/39355</dc:identifier>
	<dc:identifier>10.15408/etk.v24i2.39355</dc:identifier>
	<dc:source xml:lang="en">ETIKONOMI; Vol. 24 No. 2 (2025)</dc:source>
	<dc:source>2461-0771</dc:source>
	<dc:source>1412-8969</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.uinjkt.ac.id/index.php/etikonomi/article/view/39355/17766</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Dikanio Muhammad Rezky, A. Jajang W. Mahri, Suci Aprilliani Utami</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by-sa/4.0</dc:rights>
</oai_dc:dc>