Title: Phenomena and determinants of underpricing, flipping activity and long term performance: an empirical investigation of sharia IPO in Indonesia

Authors: Ahmad Rodoni; Ade Sofyan Mulazid; Rama Febriyanti

Addresses: Faculty of Economics and Business, Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta, Jl. Ir. H. Juanda No. 95 Ciputat, 15412, Indonesia ' Faculty of Economics and Business, Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta, Jl. Ir. H. Juanda No. 95 Ciputat, 15412, Indonesia ' Faculty of Economics and Business, Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta, Jl. Ir. H. Juanda No. 95 Ciputat, 15412, Indonesia

Abstract: This study aimed to examine the phenomenon and factors affecting of underpricing, flipping activity and long term performance of Shariah IPO at the Islamic Securities in Indonesia Stock Exchange 2010-2014. The sample consisted of 59 companies enlisted in Islamic Securities. The results of one sample t-test showed there had been underpricing and flipping activity. Meanwhile there was no long-term performance decrease occurring during the Sharia IPO. The result of GLS test indicated return on equity (ROE), reputation underwriter, type of industry and time (hot/old) was negative effect on underpricing. Debt to equity (DER), earning per share (EPS) variables; auditor reputation was positive effect. Whereas, return on asset (ROA) and size of age was no significant affect on underpricing. Besides, GLS test also showed DER was negative effect on flipping activity. Type of industry; time (hot/cold) was positive effect. Whereas, ROA, ROE, EPS, size of age, firm size, underwriter reputation and auditor reputation variables was no significant effect on flipping activity.

Keywords: sharia IPO anomaly; underpricing; flipping activity; long-term performance; auditor; flipping; performance.

DOI: 10.1504/IJMEF.2018.095745

International Journal of Monetary Economics and Finance, 2018 Vol.11 No.4, pp.394 - 410

Received: 01 Sep 2017
Accepted: 29 Mar 2018
Published online: 19 Oct 2018 *

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