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Volume 14
Issue 1
Online publication date 2018-01-24
Title Underpricing and long-term market performance of initial public offerings in Indonesia: A quantile regression approach
Author Nugroho Sasikirono, Sumiati Sumiati, Nur Khusniyah Indrawati
Abstract
This study aims to identify the relationship between underpricing and long-term market performance of IPOs in the Indonesian Stock Exchange (IDX), as well as determinants of IPOs' market performance. We based our paper on the idea that it is more meaningful and relevant to investigate underpricing and long-term market performance determinants at different distribution points. OLS and quantile regression analysis isapplied to 105 samples of IPOs during 2009-2013. The results of OLS and quantile regressions indicate that assets value, age, proceeds, and underwriters’ reputation are determinants of long-term market performance; while assets, age and proceeds also become underpricing determinants. Among these factors, proceeds become the most important determinant of underpricing and long-term market performance. 

Citation
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Keywords Underpricing, long-term market performance, Indonesia, quantile regression.
DOI http://dx.doi.org/10.15208/beh.2018.13
Pages 152-167
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