THE EFFECT OF INFLATION, COMPANY SIZE AND DEBT TO EQUITY RATIO ON STOCK UNDERPRICING MODERATED BY UNDERWRITER REPUTATION IN COMPANIES CONDUCTING INITIAL PUBLIC OFFERINGS (IPOs) ON THE INDONESIAN STOCK EXCHANGE FROM 2021 TO 2024

Firmansyah Firmansyah; Eka Yulianti

doi:10.36526/sosioedukasi.v15i1.7422

Authors

Firmansyah Firmansyah Faculty of Economics and Business, Universitas Jenderal Achmad Yani, Cimahi, Indonesia
Eka Yulianti Faculty of Economics and Business, Universitas Jenderal Achmad Yani, Cimahi, Indonesia

DOI:

https://doi.org/10.36526/sosioedukasi.v15i1.7422

Keywords:

Underpricing of Shares, Initial Public Offering (IPO), Inflation, Company Size, Underwriter Reputation

Abstract

This study evaluates the impacts of inflation, firm size, and leverage, proxied by the debt-to-equity ratio, on IPO underpricing among companies listed on the Indonesia Stock Exchange during the 2021–2024 period., with underwriter reputation posited as a moderating construct. Employing a quantitative design, secondary data were extracted from corporate financial disclosures and capital market sources. The final sample comprised 140 underpriced IPO firms selected through purposive sampling. The empirical investigation employed multiple linear regression and Moderated Regression Analysis (MRA). The results demonstrate that none of the explanatory variables exert statistically significant partial effects on IPO underpricing. Furthermore, underwriter reputation neither directly influences underpricing nor moderates the relationships between inflation, firm size, leverage, and IPO underpricing. Collectively, the explanatory variables also fail to exhibit a significant joint effect. These outcomes suggest that IPO underpricing in Indonesia is driven by determinants beyond the macroeconomic conditions and firm-specific financial attributes examined herein.

References

Adnyana, I. M. (2017). Pengaruh Faktor-Faktor Mikro Dan Makroekonomi Terhadap Tingkat Underpricing Pada Saat Initial Public Offering (IPO). Jurnal Ilmu Manajemen, 13(2), 72–86.

Aeniah, A., & Hartikayanti, H. N. (2025). The Effect of Financial Distress, Profit Management and Financial Stability on Financial Report Cheating (Case Study on Banking Companies Listed on the Indonesia Stock Exchange for the 2019-2023 Period). International Journal of Accounting, Business, and Economic Policy, 1(3), 124–133. https://ojs.projurnal.com/index.php/ijabep/article/view/51

Alimah, T. N., & Nursiam. (2020). Pengaruh Ukuran Perusahaan, Umur Perusahaan, Return On Assets (ROA), Reputasi Underwriter, Reputasi Auditor Terhadap Tingkat Underpricing Pada Penawaran Umum Perdana (IPO) (Studi Empiris Pada Perusahaan Yang IPO Di BEI Periode 2016-2018). In UMSLibrary.

Bahri, S. (2023). Metodologi Penelitian Kuantitatif, Kualitatif, dan Kombinasi. CV. Media Sains Indonesia.

Baker, M., & Wurgler, J. (2002). Market Timing and Capital Structure. The Journal of Finance, 57(1), 1–32. https://doi.org/https://doi.org/10.1111/1540-6261.00414

BPS. (2020). Pertumbuhan Ekonomi Indonesia Triwulan IV-2019. Www.Bps.Go.Id.

Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management: Concise by Cengage. Cengage Learning.

Carter, R., & Manaster, S. (1990). Initial Public Offerings and Underwriter Reputation. The Journal of Finance, XLV(4), 1045–1067. https://doi.org/10.1111/j.1540-6261.1990.tb02426.x

Desiyanti, R., Hanum, M., Chrismondari, & Yuliza, M. (2023). The Effect of Firm Characteristics on The Underpricing of IPO Stock. JOURNAL OF MANAGEMENT, ACCOUNTING, GENERAL FINANCE AND INTERNATIONAL ECONOMIC ISSUES, 2(4), 1037–1049. https://doi.org/10.55047/marginal.v2i4.814

Dewi, M. R. K., Gayatri, G., & Wirama, D. G. (2024). The Moderating Role of Underwriter Reputation in the Relationship Between Financial Performance and Underpricing Levels. E-Jurnal Akuntansi, 34(9), 2398–2410. https://doi.org/10.24843/eja.2024.v34.i09.p15

Dewi, M. R. K., & Wirama, D. G. (2025). The Moderating Role of Underwriter Reputation in the Relationship Between Financial Performance and Underpricing Levels. E-Jurnal Akuntansi, 35(9), 2398–2410. https://doi.org/10.24843/eja.2024.v34.i09.p15

Dewi, N. W. T. P. D., Hasibuan, H. T., & Yasa, G. W. (2025). Factors Affecting the Underpricing of Shares of Companies that Conduct Initial Public Offerings with the Auditor’s Reputation as a Moderator. Journal of Social Research, 4(7), 1723–1739. https://doi.org/10.55324/josr.v4i7.2673

Eseimieghan, T., & Onuorah, A. C.-C. (2025). Financing Mix Decision and Firm Performance Optimality: Evidence from the Nigerian Oil and Gas Industry. Journal of Accounting, Finance, and FinTech Advancements, 1(2), 70–78. https://ojs.proaksara.com/index.php/jaffa/article/view/76

Evitasari, R. D., & Nurhadi, N. (2023). Pengaruh Financial Leverage, Profitabilitas, dan Firm Size Terhadap Tingkat Underpricing Saham IPO di Bursa Efek Indonesia (BEI): The Effect of Financial Leverage, Profitability, and Firm Size on The Level of Underpricing. CURRENT Jurnal Kajian Akuntansi Dan Bisnis Terkini, 4(2), 229–241.

Fahrudin, E., Yasa, G. W., Wirakusuma, M. G., Agung, A., & Putu, G. (2025). The influence of inflation and firm characteristics on IPO underpricing : The moderating role of underwriter reputation. World Journal of Advanced Research and Reviews, 27(01), 2485–2499.

Fahrudin, E., Yasa, G. W., Wirakusuma, M. G., & Widanaputra, A. A. G. (2025). No Title. World Journal of Advanced Research and Reviews, 27(1), 2485–2499. https://doi.org/10.30574/wjarr.2025.27.1.2809

Firdaus, H., & Herawaty, V. (2020). Pengaruh Profitabilitas, Umur Perusahaan, Financial Leverage, Dan Reputasi Underwriter Terhadap Tingkat Underpricing Dengan Reputasi Auditor Sebagai Variabel Moderasi. Kocenin Serial Konferensi, 1(1), 6.3.1-6.3.9.

Irawan, I. (2024). Identification of Underpricing FactorsInitial Public Offering Manufacturing Sector on The Indonesia Stock Exchange. International Journal of Indonesian Business Review, 3(1), 23–33.

Irawan, I., & Nasution, I. R. (2023). Identification of Underpricing Factors Initial Public Offering (IPO) Manufacturing Sector on The Indonesia Stock Exchange. Management Research and Behavior Journal, 3(1), 1–8.

Jannah, M. (2024). Pengaruh Reputasi Underwriter , Umur Perusahaan dan Financial Leverage terhadap Underpricing pada Perusahaan yang Go Public di Bursa Efek Indonesia. TASWIQ: Jurnal Ekonomi Syariah, 1(2), 43–53. https://doi.org/10.35905/taswiq.v1i2.10788

Jean Philippe Bouchad, M. P. (2003). Theory of Financial Risk and Derivative pricing. Cambridge University Press.

Kalbuana, N., Yohana, Y., Bp, A. I., & Cahyadi, C. I. (2021). Pengaruh Ukuran Perusahaan, Kebijakan Hutang, Profitabilitas Terhadap Nilai Perusahaan (Studi Kasus Perusahaan Properti Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2020). Jurnal Riset Akuntansi Politala, 4(2), 58–66.

Kusumawati, R., & Fitriyani, A. (2019). Fenomena Underpricing dan Faktor-faktor yang Mempengaruhinya. Jurnal Ekonomi Pembangunan, 5(2), 67–79.

Mandasari, N., Wijayanti, A., & Masitoh, E. (2020). Analysis of Factors Affecting Theunderpricing of Common Shares on Initial Public Offering (IPO) In Indonesia Stock Exchange (IDX). Journal of Economics, Finance and Management Studies3, 3(8), 117–125.

Mandayani, M. S., & Yulianti, E. (2024). The Influence of Return on Asset, Firm Size, and Earnings Per Share on Underpricing With Debt to Equity Ratio as a Moderating Variable in Companies That Conduct an IPO on the Indonesian Stock Exchange. Jurnal Ekonomi, 13(01), 2229–2243. https://doi.org/10.54209/ekonomi.v13i01

Maygista, T. I., Mustikowati, R. I., & Firdaus, R. M. (2020). Pengaruh Umur Perusahaan, Inflasi, Dan Suku Bunga Terhadap Underpricing (Pada Perusahaan Property dan Real Estate yang Melakukan IPO Di Bursa Efek Indonesia Periode 2012 - 2019). Jurnal Riset Mahasiswa Manajemen, 8(1), 1–4. https://doi.org/https://doi.org/10.21067/jrmm.v6i1.4468

Nanda Din Nurazizah, M. (2019). Analisis Faktor-Faktor Yang Mempengaruhi Tingkat Underpricing Pada Saat Initial Public Offering (IPO) Di Bursa Efek Indonesia. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 3(3), 157–167. https://doi.org/10.31955/mea.vol4.iss1.pp157-167

Nasution, A. A., & Mutasowifin, A. (2021). Impact of Macroeconomic Factors on Underpricing: Case of Indonesia Stock Exchange. InFestasi, 17(2), 133–142. https://doi.org/10.21107/infestasi.v17i2.11929

Nasution, I. R. (2024). Identification of Underpricing FactorsInitial Public Offering Manufacturing Sector on The Indonesia Stock Exchange. International Journal of Indonesian Business Review, 3(1), 23–33.

Pangestuti, D. C. (2022). Initial Returns Determinants with the Underwriter’s Reputation as a Moderating Factor. Jurnal ASET (Akuntansi Riset), 14(2), 267–284.

Panjaitan, D. K., & Muslih, M. (2019). Manajemen Laba : Ukuran Perusahaan, Kepemilikan Manajerial dan Kompensasi Bonus. Jurnal ASET (Akuntansi Riset), 11(1), 1–20.

Perkasa, A. D., & Maiyaliza, M. (2024). IPO Underpricing Analysis: Underwriter Reputation as A Moderating Variable. Journal of Business and Management Review, 5(5), 387–406. https://doi.org/10.47153/jbmr55.9602024

Philip L. Cooley, R. L. R. and I.-K. C. (1975). Capital Budgeting Procedures under Inflation. Financial Management, IV, 18–27. https://doi.org/https://doi.org/10.2307/3664937

Puspita, A., & Wahyuningsih, P. (2018). Pengaruh Debt to Equity Ratio, Persentase Saham ke Publik dan Reputasi Underwriter terhadap Underpricing pada Perusahaan yang Melakukan IPO di BEI Periode 2013-2018. Prosiding Seminar Nasional Unimus, 1131–1137.

Renitia, R., Suripto, S., & Harori, M. I. I. (2021). Pengaruh Total Asset Turnover, Debt to Equity Ratio (DER), Ukuran Perusahaan, Nilai Tukar Rupiah, dan IHSG terhadap terjadinya Tingkat Underpricing Saham. Jurnal Perspektif Bisnis, 4(1), 23–37.

Revaldy, F., & Sutrisno, S. H. (2023). Analisis Faktor Internal Dan Eksternal Yang Mempengaruhi Tingkat Underpricing Pada Saat Initial Public Offering (Ipo) Di Bursa Efek Indonesia Periode 2019-2022. Jurnal Ekonomi Trisakti, 3(1), 1519–1530.

Sari, E. P., Gunawan, Y., & Elvina, E. (2022). Pengaruh Kepercayaan Kepada Pemerintah, Kebijakan Insentif Dan Manfaat Pajak Terhadap Kepatuhan Wajib Pajak. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 6(3), 712–732. https://doi.org/10.31955/mea.v6i3.2269

Sazili, A. (2022). Pengaruh Struktur Modal dan Struktur Aktiva Serta Ukuran Perusahaan Terhadap Kinerja Keuangan Perbankan yang Go Publik. Jurnal Ekonomi, Manajemen, Bisnis, Auditing Dan Akuntansi, 7(2), 30–40.

Septianita, S. (2025). Factors Influencing Stock Price Underpricing During IPOs on the Indonesia Stock Exchange (Empirical Study on Companies Listed on IDX from 2019 to 2023). PENG: Jurnal Ekonomi Dan Manajemen, 2(3), 3484–3494.

Spence, M. (1978). Job market signaling. In Uncertainty in economics (pp. 281–306). Elsevier.

Steven, Syabandi, Malini, H., Girianti, & Karsim. (2023). The Underpricing Phenomenon in Initial Public Offerings (IPOS) Through Financial Performance as a Moderating Variable in Companies Listed on The Indonesia Stock Exchange. Jurnal Ekonomi, 12(4), 1963–1975.

Suaidah, Y. M., Putri, R. A., & Suprapto, S. (2025). The Effect of Leverage and Profitability on Firm Value Moderated by Firm Size. International Journal of Accounting, Business, and Economic Policy, 1(2), 64–72. https://ojs.projurnal.com/index.php/ijabep/article/view/11

Suardana, I. K., Endiana, I. D. M., & Arizona, I. P. E. (2020). Pengaruh profitabilitas, kebijakan utang, kebijakan dividen, keputusan investasi, dan ukuran perusahaan terhadap nilai perusahaan. Kumpulan Hasil Riset Mahasiswa Akuntansi (KHARISMA), 2(2), 137–155.

Sugiyono. (2017). Metode Penelitian Kuantitatif Kualitatif dan R&D. CV. Alfabeta.

Sulistiawati, E., Murtatik, S., & Pangestuti, D. C. (2021). Analisis prospektus informasi dan inflasi terhadap underpricing saham di bei. Konferensi Riset Nasional Ekonomi, Manajemen, Dan Akuntansi, 2(2), 1199–1215.

Suryani. (2021). Pengaruh Profitabilitas, Ukuran Perusahaan, Pertumbuhan Penjualan dan Kualitas Audit terhadap Tax Avoidance. Jurnal Akuntansi Dan Keuangan FEB Universitas Budi Luhur, 10(1), 19–36.

Sutrisno. (2012). Manajemen keuangan teori konsep & aplikasi.

Tanoyo, D., & Arfianti, R. I. (2022). Factors Affecting the Level of Stock Underpricing in Non-Financial Companies. Journal of Management and Leadership, 5(1), 38–55. https://doi.org/10.47970/jml.v5i1.301

Taslim, Angie Auryn, I. I. (2023). Pengaruh Return on Equity, Financial Leverage dan Ukuran Perusahaan Terhadap Underpricing Saham. EKONOMIKA45 : Jurnal Ilmiah Manajemen, Ekonomi Bisnis, Kewirausahaan, 11(1), 411–422.

Umam, K. (2020). Analisis Faktor-Faktor Yang Mempengaruhi Perdana Di Bursa Efek Indonesia Dengan Kinerja. Prosiding KONFERENSI ILMIAH MAHASISWA UNISSULA (KIMU) 3. https://jurnal.unissula.ac.id/index.php/kimue/article/view/10044/4882

Wenehen, C., Ekananda, M., & Safitri, J. (2025). Pengaruh Faktor Internal dan Makroekonomi Terhadap Underpricing Saham IPO di Bursa Efek Indonesia: Pendekatan Sektoral Tahun 2022–2024. Journal of Accounting and Finance Management, 6(3), 1816–1832. https://doi.org/10.38035/jafm.v6i3.2292

Wigantini, G. R., & Nainggolan, Y. A. (2022). The Return on IPO Stocks during the COVID-19 Pandemic in Indonesia. Jurnal Manajemen Teknologi, 21(3), 253–263.

Wijaya, A. A., & Kufepaksi, M. (2023). Analysis of the influence of profitability, company size, company age, and underwriter’s reputation on the underpricing of stocks during the IPO on IDX 2010–2020 period. Asian Journal of Economics and Business Management, 2(1), 438–445. https://doi.org/10.53402/ajebm.v2i1.285

World Bank. (2022). Indonesia’s Economy Sees Rebound in 2022 following Post-Covid Reopening.

World Bank. (2023). The World Bank in Indonesia: Country overview. Www.Worldbank.Org. https://www.worldbank.org/ext/en/country/indonesia

Yandes, J. (2024). Tracing the Underpricing Trail: The Impact of Debt to Asset Ratio and Inflation in IPO. International Journal of Economics and Management Research, 3(1), 170–183.

Yuniarti, D., & Syarifudin, A. (2020). Pengaruh leverage, profitabilitas dan ukuran perusahaan terhadap underpricing pada saat initial public offering. Jurnal Ilmiah Mahasiswa Manajemen, Bisnis Dan Akuntansi (JIMMBA), 2(2), 214–227.