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This study aims to examine the factors influence of IPO performance to IPO returns. This study tries to define an appropriate mechanism to determine the factors that can influence IPO return in Indonesia, as represented by the companies in Indonesia Stock exchange (IDX). Factors influencing IPO performance are representative by six variables, namely firm size, age of the firm, total share ofter to public type of investor, debt level of the firm and price ratio of offeringp price and earning per share. IPO returns factors are represented by one variable, which is short term return (initial return) . Data for this study were taken from compaines listed in IDX year 1996 -2006. Based on the research finding and analysis, it is found that the factors scrutinzed by the researcher (firm size, age of the firm, Total share offter to public, type of investor, debt level and price ratio) cannot influence the IPO return in Indonesia market: This possibly occurs because the invesment condition cannot can be influenced by the internal condition of the company. Furthermore, the investor especially outsider one, probably still has doubts on external conditions such unstable, economic condition, political condition, government regulation and security conditions in Indonesia thus, it is possible that external condition can influence the IPO return in Indonesia. |
