REVISITING THEORY OF UNDERPRICING AT INITIAL PUBLIC OFFERING IN INDONESIA

Abstract

This research aims to proof the existing theory of underpricing phenomenon at Initial Public Offering (IPO). The one of many theory has been used to explain it phenomenon is asymmetry information. The results of this research found that theory of asymmetry information explained underpricing phenomenon weakly. By using many proxies variable represented asymmetry information theory, there was only financial leverage affected on underpricing phenomenon. This research’s result will reopen the discussion of explained theory in IPO phenomenon.

Keywords : IPO, Underpricing, Asymmetry Information