Underpricing of Stocks Affected by Financial Performance, Company Size, and Company Age in Companies IPO on the IDX for the 2019-2022 Period

Abstract

The purpose of this research is to determine the influence and analyze the Current Ratio (CR), Debt to Equity Ratio (DER), Total Asset Turnover (TATO), Return on Assets (ROA), Return on Equity (ROE), Company Size, and Company Age partially towards Stock Underpricing. This research uses secondary data obtaned from annual financial reports and company prospectuses listed on the Indonesia Stock Exchange for the 2019-2022 period. By using purposive sampling, 30 companies were obtaned based on predetermined criteria. The data analysis method uses descriptive analysis, classical assumption testing, multiple linear regression analysis, and hypothesis testing. The research results partially show that the Current Ratio (CR) and Company Size have no effect on Stock Underpricing. Debt to Equity Ratio (DER), Total Asset Turnover (TATO), Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM) and Company Age partially influence Stock Underpricing.