GCBME 2019 Conference

THE EFFECT OF DER, EPS, AND UNDERWRITER REPUTATION ON INITIAL RETURN WITH INTEREST RATE
Lasmanah, Disman, Nugraha

Universitas Pendidikan Indonesia


Abstract

This study aims to analyze the effect of EPS, DER and underwriter reputation on initial returns which is moderated by the interest rate on IPO issuers. Statistical data analysis is logit regression analysis. The results showed that EPS, DER, and underwriter reputation which were moderated by the interest rates had significant influenced on the initial return. On the testing of hypothesis of each variable showed that DER and underwriter reputation influenced on the initial return significantly. On the contrary, EPS and interest rate had an effect on initial returns significantly. The DER and underwriter reputation which are moderated by the interest rate (SB) indicated that the DER*SB and the reputation of the Underwriter*SB had no a significant effect on the initial return,. As for the variable EPS*SB indicated that it had a significant effect on the initial return. This means that the EPS had an effect on the initial return with the interest rate strengthening the relationship between EPS and initial return.

Keywords: IPO, DER, EPS, Underwriter Reputation, Initial Return, Interest Rate

Topic: Financial Management and Accounting

Link: https://ifory.id/abstract-plain/KRzH4cE96eVw

Web Format | Corresponding Author (Agus Rahayu)