Abstract :

This study investigates the impact of auditor reputation, underwriter reputation, and Price to Book Value (PBV) on IPO underpricing among companies listed on the Indonesia Stock Exchange (IDX). The primary objective is to analyze how these factors influence underpricing during initial public offerings (IPOs). The analysis employs a multiple linear regression model using EViews 12. The sample, selected through purposive sampling, consists of 173 companies conducting IPOs on the IDX between 2022 and August 2024, of which 131 exhibited underpricing. The findings indicate that auditor reputation has a significant positive effect on IPO underpricing, while underwriter reputation and PBV do not exhibit any significant influence. The results suggest that auditors with strong reputations and extensive IPO experience may inadvertently contribute to heightened underpricing. This may reflect investors’ overreliance on offered stock prices during IPOs, potentially stemming from limited competence in evaluating firm performance. This study offers valuable insights for investors, serving as a reference to support more informed investment decisions.

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Keywords :

Auditor’s Reputation, Price to Book Value (PBV), Signalling Theory and IPO Underpricing, Underwriter’s Reputation.

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