The Influence of Good Corporate Governance Mechanism to Underpricing: Empirical Study of Company's IPO in Indonesian Stock Exchange

UG Jurnal, Vol. 11, No. 3, 2017, ISSN: 1978-4783

Posted: 29 Nov 2017

See all articles by Rowland Bismark Pasaribu

Rowland Bismark Pasaribu

NAMOURA Research Institute; Gunadarma University

Date Written: Maret 12, 2017

Abstract

This study aims to examine the effect of Good Corporate Governance mechanisms to underpricing phenomena at companies registered in Indonesia stock exchange and performs Initial Public Offering, and underpricing during 2010-2014. This research is based on signal theory (signaling theory) which states that good GCG mechanism will give good signal of company quality so that it will be reflected stock price at IPO will be high, so it will avoid underpricing. The results provide empirical evidence that it is only the number of the Board of Commissioners that affect the occurrence of underpricing.

Keywords: Good Corporate Governance Mechanisms, Initial Public Offering, Signaling Theory

JEL Classification: G10, G14, G30, G34

Suggested Citation

Pasaribu, Rowland Bismark, The Influence of Good Corporate Governance Mechanism to Underpricing: Empirical Study of Company's IPO in Indonesian Stock Exchange (Maret 12, 2017). UG Jurnal, Vol. 11, No. 3, 2017, ISSN: 1978-4783, Available at SSRN: https://ssrn.com/abstract=3076838

Rowland Bismark Pasaribu (Contact Author)

NAMOURA Research Institute ( email )

Jl. Komando III/2 No.37
Setiabudi
South Jakarta, DKI Jakarta 12920
Indonesia

Gunadarma University ( email )

Margonda Raya 100
Pondokcina, Depok
Jakarta, West Java 62-16424
Indonesia

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