The Influence of Profitability, Financial Leverage, and Market Value on Stock Underpricing during Initial Public Offerings (A Study on Non-Financial Sector Companies Conducting Initial Public Offerings in the Indonesia Stock Exchange from 2018-2022) Faisal Aski Ardiansyah (a*), Jurana NS (b), Muliati (c), Masruddin (d)
a) Faculty of Economics and Business, Tadulako University
Jl. Soekarno Hatta No.KM. 9, Tondo, Kec. Mantikulore, Kota Palu, Sulawesi Tengah, Indonesia
*faisal01aski[at]gmail.com
b) Faculty of Economics and Business, Tadulako University
Jl. Soekarno Hatta No.KM. 9, Tondo, Kec. Mantikulore, Kota Palu, Sulawesi Tengah, Indonesia
c) Faculty of Economics and Business, Tadulako University
Jl. Soekarno Hatta No.KM. 9, Tondo, Kec. Mantikulore, Kota Palu, Sulawesi Tengah, Indonesia
d) Faculty of Economics and Business, Tadulako University
Jl. Soekarno Hatta No.KM. 9, Tondo, Kec. Mantikulore, Kota Palu, Sulawesi Tengah, Indonesia
Abstract
This research aims to test and analyze the partial and simultaneous influence of profitability, financial leverage and market value on stock underpricing during Initial Public Offerings (IPO) of non-financial sector companies listed on the Indonesia Stock Exchange. The study utilized purposive sampling to determine the sample size, resulting in 189 companies as the research sample. The data used were annual financial report data from the prospectuses of non-financial sector companies that went public between 2018 and 2022. Data collection was conducted using documentation techniques, and the data analysis method employed multiple linear regression analysis. The research findings indicate that profitability, financial leverage, and market value collectively have a significant influence on underpricing. Profitability, when considered individually, has a negative impact on underpricing. In contrast, financial leverage, when examined individually, does not affect underpricing. Market value, when analyzed individually, has a negative influence on underpricing.
