SRI MARLIA. The Correlation of Underwriter‟s Reputation and Financial
Leverage with Underpricing of Stock at Initial Public Offering (IPO) Period 2009
until 2013. Skripsi. Faculty of Economics. State University of Jakarta. 2014.
This study aims to examine the correlations that exist in the underwriter's
reputation and financial leverage with the company's stock underpricing when
Initial Public Offering (IPO) in the stock market in 2009 – 2013.
The method used is survey method with a descriptive analysis procedures and
statistical analysis with regression and correlation tests. This research used the
secondary data, the data needed to determine the underwriter‟s reputation is the
name of the IPO issuer's lead underwriters and the underwriter‟s rating in the 20
Most Active Stock Exchange Brokerage House Monthly in 2009-2013 were
assessed with a dummy variable and data used to determine financial leverage is
total debts and total assets of the issuer's last year before the IPO that obtained
from Prospectus by using the formula of debt to asset ratio. And for the use of
underpricing data is the IPO price and the closing price of the first day of listing
on the Stock Exchange (IDX). In this study, sampling used is a random sampling
method using tables Isaac. In this study, the samples used is 72 companies that go
public in the year 2009 to 2013 in Indonesia.
Regression equation in this study is Y = 47,977 - 15,259X
iv
1
– 24,292X
From the
results of the analysis, indicate that the underwriter's reputation and financial
leverage each significantly negatively associated with underpricing. Silmutantly,
the correlation between underwriter reputation and financial leverage with
underpricing is significantly related with a moderate degree of correlation. The
ability of the underwriter's reputation and financial leverage explain underpricing
is 21.4%
