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