Title: Determinants of intellectual capital disclosure in the IPOs and its impact on underpricing: evidence from Indonesia

Authors: Wahyu Widarjo; Bandi

Addresses: Department of Accounting, Faculty of Economics, Universitas Tunas Pembangunan, Jl. Walanda Maramis 31 Surakarta 57135, Indonesia ' Department of Accounting, Faculty of Economics and Business, Universitas Sebelas Maret, Jl.Ir Sutami 36 A Surakarta 57126, Indonesia

Abstract: We investigate the determinants of intellectual capital (IC) disclosure in the prospectus of initial public offering (IPO). Going deeper, we also examine the impact of IC disclosure on underpricing. By studying 86 IPOs of Indonesian firms over the period of 2000-2014, we do find that ownership retention and underwriting portion have a positive effect on the extent to which IC is disclosed. Moreover, our results reveal that IC disclosure is negatively correlated with the level of underpricing. In addition, evidence is also found that IC disclosure mediates the link between underwriting portion and underpricing.

Keywords: Initial public offerings; intellectual capital disclosure; managing underwriter; ownership retention; underpricing.

DOI: 10.1504/IJLIC.2018.088346

International Journal of Learning and Intellectual Capital, 2018 Vol.15 No.1, pp.1 - 19

Received: 10 Feb 2016
Accepted: 24 Jan 2017

Published online: 04 Dec 2017 *

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