Effect of Institutional Ownership and Audit Committee to Underpricing in Indonesian Stock Exchange
1Joyo Wijoyo, 2Sugeng Haryanto, 3Harmono, 4Tesar Librian Priyo Susilo
1,2,3,4University of Merdeka Malang, Indonesia
https://doi.org/10.47191/jefms/v7-i9-52ABSTRACT:
Underpricing is a phenomenon that remains unresolved. Between 2015 and 2022, 83 percent of companies listed on the Indonesia Stock Exchange (IDX) experienced underpricing. Information asymmetry is often cited as the primary reason for underpricing during the Initial Public Offering (IPO) process. The audit committee and institutional ownership are crucial indicators in reducing information asymmetry between issuers, underwriters, and investors. This study aims to examine the consistency of the application of the audit committee and institutional ownership in influencing underpricing, using a sample of 304 companies that experienced underpricing between 2015 and 2022.
KEYWORDS:
Underpricing, Information Asymmetry, Signaling Theory, Institutional Ownership, Audit Commitee
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