Title: Phenomenon of leaving money on the Indonesian's IPO table

Authors: Fajri Adrianto; Masyhuri Hamidi; Syukri Lukman; Laela Susdiani; Jingga Novebreza Islah

Addresses: Faculty of Economics, Universitas Andalas, Unand Limau Manis Campus, Padang, Indonesia ' Faculty of Economics, Universitas Andalas, Unand Limau Manis Campus, Padang, Indonesia ' Faculty of Economics, Universitas Andalas, Unand Limau Manis Campus, Padang, Indonesia ' Faculty of Economics, Universitas Andalas, Unand Limau Manis Campus, Padang, Indonesia ' Magister of Management, Faculty of Economics, Universitas Andalas, Perintis Kemerdekaan Street, 77, Jati, Padang, Indonesia

Abstract: This research aims to study 'leaving money on the table' phenomenon in emerging IPO market. This phenomenon exists in the emerging market, including the Indonesian stock market. During 2010-2018, more than 80% of Indonesian IPOs are underpriced. Therefore, this study is essential to examine the relationship between fundamental information/underwriters and the amount of money left on the Indonesian IPO table. We test our non-financial institutional IPO using the cross-sectional regression model. We find that firms with experienced underwriters and good governance are more likely to leave lower money on the Indonesia IPO table.

Keywords: initial public offering; IPO; underwriter; governance; underpricing.

DOI: 10.1504/IJBG.2025.143911

International Journal of Business and Globalisation, 2025 Vol.39 No.2, pp.183 - 199

Received: 22 May 2020
Accepted: 09 Apr 2021
Published online: 14 Jan 2025 *

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