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| Field |
Value |
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| Title |
The Possibility of Manipulated IPO Underpricing and Post-IPO Stock Return: Empirical Study on Jakarta Stock Exchange 2009-2012
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| Creator |
Sugeng Purwanto; Paramadina Graduate School of Business
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| Subject |
—
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| Description |
Ritter and Welch (2002) explain there are two types of IPO firms, namely higher quality firms andlower quality firms. This research propose the third type, namely bad IPO firms which manipulateand force IPO underpricing. Bad IPO firms are subset of lower quality IPO firms that force falsesignal as higher quality firms. The false signal was hidden by managing post-IPO trading. Tradingmanagement are indirectly funded by using balance sheet cash. Hypothesis testing with the empiricalmodel 1 was to confirm the role of CashRatio as the moderating variable that interact DER to affectIPO underpricing which originally was not. The findings support the predictions that interactivevariable DER*CashRatio affect IPO underpricing. A managed trading had a non negative profitsconstraint so that selective post-IPO trading was conducted to cause trading imbalance observableas skewed trading volume (Skewness). Subsequent tests with the empirical model 2 was to confirmthe role of Skewness as the moderating variable that interact VolRatio to affect post-IPO stockreturn (RGM) which originally was not. The findings support the predictions that interactive variableLnVolRatio*Skew affect RGM. Both findings confirm this research predictions on the possibility ofmanipulated IPO trading in Indonesia IPO 2009-2012.
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| Publisher |
Management Research Center, Department of Management, Faculty of Economics and Business, U
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| Contributor |
—
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| Date |
2014-08-13
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| Type |
Peer-reviewed Article
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| Format |
application/mbox
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| Identifier |
http://journal.ui.ac.id/index.php/icmr/article/view/3593
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| Source |
Indonesian Capital Market Review; Vol 6, No 2 (2014): July 2014
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| Language |
en
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Since 2014