What factors affecting firm value during IPOs? A study at the Indonesia Stock Exchange
Purpose — The objective of this study is to examine the factors that impact the value of a company over both the short and long term. These factors include variables such as the company's size, the reputation of the underwriter and auditor, the industry sector in which it operates, and the num...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Universitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and Business
2023-06-01
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| Series: | Journal of Enterprise and Development |
| Subjects: | |
| Online Access: | https://journal.uinmataram.ac.id/index.php/jed/article/view/7519 |
| _version_ | 1797797769904128000 |
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| author | Abdul Latif Indra Permana Zulfa Zakiatul Hidayah |
| author_facet | Abdul Latif Indra Permana Zulfa Zakiatul Hidayah |
| author_sort | Abdul Latif |
| collection | DOAJ |
| description |
Purpose — The objective of this study is to examine the factors that impact the value of a company over both the short and long term. These factors include variables such as the company's size, the reputation of the underwriter and auditor, the industry sector in which it operates, and the number of shares outstanding during the initial public offering (IPO).
Method — In this study, a quantitative causality approach with analytical properties is employed as the method of analysis. The population under investigation consists of companies that conducted initial public offerings (IPOs) between the years 2020 and 2022. A sample size of 113 companies is selected using a specific sampling approach for research purposes. To analyze the data, a binary logistic regression model is applied, along with the use of statistical tools.
Result — The conducted research has yielded several findings. Firstly, it indicates that the variable of company size does not have a significant impact. Secondly, the variable of underwriter reputation also does not have a significant effect. Thirdly, the variable of auditor reputation does not significantly influence firm value. Fourthly, the stock variable does not significantly affect firm value. Lastly, the research highlights that the industry sector variable has a significant impact on firm value.
Contribution — The research is expected to contribute to the academic field and benefit capital market players by addressing the factors that should be considered when making investment decisions in the capital market.
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| first_indexed | 2024-03-13T03:53:22Z |
| format | Article |
| id | doaj.art-edd7422ea8fa4b2cb60f99640aa8a7e5 |
| institution | Directory Open Access Journal |
| issn | 2715-3118 2685-8258 |
| language | English |
| last_indexed | 2024-03-13T03:53:22Z |
| publishDate | 2023-06-01 |
| publisher | Universitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and Business |
| record_format | Article |
| series | Journal of Enterprise and Development |
| spelling | doaj.art-edd7422ea8fa4b2cb60f99640aa8a7e52023-06-22T09:37:46ZengUniversitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and BusinessJournal of Enterprise and Development2715-31182685-82582023-06-015310.20414/jed.v5i3.7519What factors affecting firm value during IPOs? A study at the Indonesia Stock ExchangeAbdul Latif0Indra Permana1Zulfa Zakiatul Hidayah2Universitas Pelita Bangsa, IndonesiaUniversitas Pelita Bangsa, IndonesiaUniversitas Pelita Bangsa, Indonesia Purpose — The objective of this study is to examine the factors that impact the value of a company over both the short and long term. These factors include variables such as the company's size, the reputation of the underwriter and auditor, the industry sector in which it operates, and the number of shares outstanding during the initial public offering (IPO). Method — In this study, a quantitative causality approach with analytical properties is employed as the method of analysis. The population under investigation consists of companies that conducted initial public offerings (IPOs) between the years 2020 and 2022. A sample size of 113 companies is selected using a specific sampling approach for research purposes. To analyze the data, a binary logistic regression model is applied, along with the use of statistical tools. Result — The conducted research has yielded several findings. Firstly, it indicates that the variable of company size does not have a significant impact. Secondly, the variable of underwriter reputation also does not have a significant effect. Thirdly, the variable of auditor reputation does not significantly influence firm value. Fourthly, the stock variable does not significantly affect firm value. Lastly, the research highlights that the industry sector variable has a significant impact on firm value. Contribution — The research is expected to contribute to the academic field and benefit capital market players by addressing the factors that should be considered when making investment decisions in the capital market. https://journal.uinmataram.ac.id/index.php/jed/article/view/7519underwriter reputationauditor reputationindustry sectormicroeconomicsfirm value |
| spellingShingle | Abdul Latif Indra Permana Zulfa Zakiatul Hidayah What factors affecting firm value during IPOs? A study at the Indonesia Stock Exchange Journal of Enterprise and Development underwriter reputation auditor reputation industry sector microeconomics firm value |
| title | What factors affecting firm value during IPOs? A study at the Indonesia Stock Exchange |
| title_full | What factors affecting firm value during IPOs? A study at the Indonesia Stock Exchange |
| title_fullStr | What factors affecting firm value during IPOs? A study at the Indonesia Stock Exchange |
| title_full_unstemmed | What factors affecting firm value during IPOs? A study at the Indonesia Stock Exchange |
| title_short | What factors affecting firm value during IPOs? A study at the Indonesia Stock Exchange |
| title_sort | what factors affecting firm value during ipos a study at the indonesia stock exchange |
| topic | underwriter reputation auditor reputation industry sector microeconomics firm value |
| url | https://journal.uinmataram.ac.id/index.php/jed/article/view/7519 |
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