Abstract: The underpricing phenomenon is a phenomenon of initial public offering with a cheaper share price in the primary market compared to the secondary market. Investors expect underpricing to get an initial return. Meanwhile, the company will not get the maximum amount of funds. The purpose of this study was to determine the quality of the underwriter as a moderating effect on the basic earning power, debt to equity ratio, and proceeds on the level of underpricing stocks. This research was conducted on non-financial companies that made initial public offerings in 2016-2019. The sample was selected by a purposive sampling method to get as many as 141 companies. The data analysis technique used is moderate regression analysis. This study proves that only the proceeds have a negative effect on the level of underpricing stocks. Underwriter quality is only able to moderate the negative effect of basic earning power and proceeds at the level of underpricing stocks.
Keywords: Underpricing, Basic Earning Power, Debt to Equity Ratio, Proceeds, Underwriter Quality.
Title: The Underwriter Quality Moderates the Effect of Financial Information on the Level of Underpricing of Shares during the Initial Public Offering
Author: Amrullah Hanif Azam, I Gusti Ayu Eka Damayanthi, I Ketut Yadnyana, I Wayan Ramantha
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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