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Journal : Journal of Enterprise and Development (JED)

What are the determinants of underpricing in Initial Public Offerings? Evidence from Indonesia Heriyanto, Heriyanto; Chen, Ming; Lyani, Erni
Journal of Enterprise and Development (JED) Vol. 5 No. Special-Issue-1 (2023): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

Purpose — This study aims to investigate the impact of different variables, including firm size, underwriter reputation, firm age (representing asymmetric information), board ownership, institutional ownership (representing ownership structure), industry sector (financial or non-financial), and ownership status (state-owned or non-state-owned enterprises) on the initial return, which serves as a measure of underpricing level.Method — We focus on companies that underwent initial public offerings (IPOs) between 2010 and 2019. For our study, we selected a sample of 261 firms using the purposive sampling technique. To analyze the data, we employed a multiple linear regression model and utilized SPSS as a testing tool.Result — Based on our research findings, we have identified that firm size, underwriter reputation, and institutional ownership significantly affect the level of underpricing. However, we found no evidence to suggest that factors such as company age, board ownership, industry sector, or ownership status have any impact on the underpricing level. Our results support the notion that asymmetric information plays a crucial role in explaining the observed underpricing phenomenon in IPOs, while industry type and ownership structure do not contribute to its explanation.Contribution — This study makes a valuable contribution to the existing research on IPO underpricing in Indonesia. It stands out by employing a comparatively long research period and incorporating not only variables that address asymmetric information but also variables pertaining to governance mechanisms, specifically board ownership and institutional ownership.
CEO characteristics and corporate debt: An in-depth analysis in the Indonesian context Heriyanto, Heriyanto
Journal of Enterprise and Development (JED) Vol. 6 No. 1 (2024): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v6i1.8940

Abstract

Purpose — This study aims to investigate differences in debt policies among companies listed on the Indonesia Stock Exchange, with a focus on gender and CEO tenure.Method — This research was carried out on non-financial companies listed on the Indonesia Stock Exchange from 2013 to 2022. The sampling method employed in this study was a purposive sampling approach. The initial sample comprised 86 companies, and the final sample consisted of 65 companies, yielding a total of 650 observations. The data analysis technique utilized in this study is the independent difference test, employing a nonparametric approach through the Mann-Whitney test.Result — This study revealed significant disparities in debt policies among companies listed on the Indonesia Stock Exchange, depending on the gender of the CEO. Specifically, male CEOs demonstrated a propensity to employ higher levels of debt compared to their female counterparts. Conversely, with regard to CEO tenure within the company, no significant difference was observed in relation to the company's debt policy.Novelty  — The novelty of this research lies in its emphasis on the importance of examining the gender and tenure of CEOs concerning the company's debt levels. The extended research period contributes a unique element by providing a more comprehensive perspective, and this is particularly noteworthy in the context of Indonesian studies, which have been relatively scarce and have yielded mixed results.
The Moderating Role of CEO Characteristics in the Relationship between Financial Conditions and Corporate Debt Policy Heriyanto, Heriyanto; Febriany, Novita; Engel, Mischella
Journal of Enterprise and Development (JED) Vol. 7 No. 2 (2025)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v7i2.14036

Abstract

Purpose: This study investigates the influence of firm financial characteristics—reflecting asymmetric information—on corporate debt policy, while also examining the moderating role of CEO characteristics within the framework of upper echelon theory.Method: The sample consists of 60 non-financial firms listed on the Indonesia Stock Exchange (IDX) during 2013–2022, selected through purposive sampling. Panel data regression analysis with moderating variables was employed to assess how CEO characteristics interact with internal financial indicators.Result: Results show that liquidity (current ratio) and profitability (return on equity) have a significant negative effect on companies’ debt-to-equity ratio, indicating that more liquid and profitable firms rely less on external debt. Tangible assets do not significantly influence debt-to-equity ratio. Among CEO characteristics, only tenure significantly moderates the relationship between profitability and debt-to-equity ratio, highlighting the strategic role of experienced CEOs in financing decisions.Practical Implications for Economic Growth and Development: The findings suggest that capital structure decisions are shaped jointly by internal financial conditions and leadership traits. Firms with stable financial profiles, guided by experienced CEOs, are more likely to establish optimal debt policies, enhancing resilience during economic shocks, safeguarding employment, and improving competitiveness—ultimately supporting broader economic growth.Originality/Value: This study contributes by integrating asymmetric information theory and upper echelon theory into a unified analytical model. By revealing how CEO characteristics moderate the impact of financial conditions on debt policy, it offers deeper insight into the complex dynamics of strategic financing decisions.
Co-Authors Abbas Abbas, Abbas Aditya, Stefanus Afrizal, Jemmy Rivaldo Al Fauzan, Muhammad Alfian Fawzi Alfiki, Rozi Ali muhajir, Ali Amirulloh, Amirulloh Anastasia Sri Mendari Anjani, Mutiara Putri Annisa Khoiriyah Anwar, La Ode Muhamad Arief Wahyudi, Hajry Ariesta, Wiwin Arman Arman ASRIL ASRIL Asrol Asrol Asrol Asrol Asrol Asrol Asrol Asrol Asrol Asrol Asrol Asrol Asrol Azhar, Zahroel Azmansyah Azmiyati, Yuli Bahari, M Farid Yudha Bakkara , Gegorius Cristian Budi Mulianto Candra, Nicholas Kisu Catur Kumala Dewi Christabel, Maria Citra Nasir Dairani, Dairani Damasinta, Alfiana Damero, Lian Darus Darus Darwin Darwin Detri Karya Detri Karya Detri Karya Detri Karya Dharma, Andhika Mustika Dinda Julia, Alla Asmara Djaimi Bakce Djaimi Bakce Djoko Santoso DTW, Joehanto Edi Sably Eko Akoso, Galuh Hangganingraras Elfi Rahmadani dan Penti Suryani Elinur Elinur Elinur, Elinur Elpanso, Efan Endri Hendrayana Engel, Mischella Erick, Erick Erma Mexcorry Sumbayak Evi Yanti Evy Maharani F. Fathurrahman Fachri Amsury Faizal Daud Fathonah, Iir Nikmatul Fathorrohman, Fathorrohman Febriany, Novita Fibriyanita, Fika Fitri Perdana, Fitri Fitriasuri, Fitriasuri Fransiska Soejono Gunawan, Andri Editia Gusfin Wahyudi H. Mukran Roni, H. Mukran Hajry Arief Wahyudy Hajry Arief Wahyudy Halilintar, Muhamad Hamid, Eka Abdul Haqqul Yaqin Harisal, Harisal HARJA, HARLINA Hartono, Octavian HENDRA GUNAWAN B11211055 Hendrawan, Yoni Heni Susanti, Heni Herliagi, Agip Hindriani, Septria Hofi, Moh. Ali hudjolly, Hudjolly Ichsan , Nursyamsi Ika Kurniawati Imam Nazarudin Latif Indria Elvina Indriani, Silvia Indriawati, Novia Irawan, Irwan Ismayanti, Rizki Iwan Setiawan Joko Saputra Kang, Hari Iskandar Karya, Detri Khairizal Khairizal Kiasati, Almas Inti Kristiyani , Wenny Kunarso Kunarso Kundori Kurnia, Deby Kurniadi Kurniadi, Kurniadi Kurnianto, Dian Kurniati, R.A. Emmy Kusmayanti, Rinda Lai, Agnes Cynthia Lia Suprihartini, Lia Litstiana, Yunika Depri Lyani, Erni M. Syahran Jailani Mainan, Cut Malik Ibrahim Mamok Suprapto Manahan, Olven Marcel Antoni Marcel Marcel Mardiana Mardiana Marlina, Sherly Masrek, Mohamad Noorman Maulina, Mia Meida Rachmawati Melati, Sevi Melita, Dina Mellita, Dina Ming Chen Mintarti, Ari Mugiri, Febi Afifah Muhammad Syafii Mukhsinin, Iqbal Munanto, Totok Sevenek Muttaqien, Adi Yusuf Nadhilah, Faiza Putri Nazaruddin, Saiful Nicolaas, Leslie Patricia Calindra Ningsih, Very Yarda Nitzah, Nitzah Noor, Riska Aulia Novan Wijaya Noviansyah Noviansyah, Noviansyah Noviardy, Andrian Novita Ana Anggraini Noviyanto Noviyanto Noviyanto Novriyanti, Suci Nurfitriani Nurfitriani Nurmansyah, Andri Nurrahmawati, Yulia Nurzaman, Rizki Pamungkas, Gerin Harya Ping, Kory Keith Prastian, Faris Naufal Prastyo, Yudo Purwati, Diah Indah Putra, Andiko Damar Putra, Edi Ramawijaya Putri, Intan Triana Rafli, Dwi Yusuf Rahayu, Sari Ramulia, Kevin Rifani, Rifani Rif’at, Mohamad Rizki Fahdia, Muhammad Rizki Nurislaminingsih, Rizki Rosdiana Rosdiana Rostina Rostina Sabeli Aliya Sapardi, Sapardi Saputra, Tri Eka Setiawan, Zhoga Shinta Herawati, Lely Sihombing, Grace Kelly Hadi Putri Simin Simin, Simin Slamet Riyadi Solihin, Danna Sri Hastuti Sri Sugihartiningsih, Sri Sri Wahyuningsih Subekti, Puja Sudiansyah, Sudiansyah Sudrajat Sudrajat Suharno Suharno Suharti, Sri Sukadi Sukadi Sulistiyani, Rizka Sulistiyani Sunarto Sunarto Suprianingrum, Elvy Suramaya Suci Kewal Suryati, Nila Susanto, Cristofer Sutanto , Christofer Suwantono, Edwin Suwarni, Iin Syarif, Amirudin Syarif, Irsil Tanto Tanto Tarigan, Reinha Rosari Melinda Taufiq Taufiq Tiara, Sinsi Tiggi Choanji Tiggi Choanji, Tiggi Titin Ruliana Trisninawati, Trisninawati Umi Kulsum Utari, Viny Wahyuanto, Eko Wahyuni, Nenny Wati, Bungsu Widias Wayuanto , Eko Widiyono, Eling Widjayanti , Kesi Widodo, JDT Widyartono, Agustinus Winarno, Ronny Xaverius, Franciscus Yanti, Mauliani Harva Yevira, Yevira Yochanan, Elisha Yohanes Andri Putranto Bernadus Yuda, Dwi Yulfarikaini, Yulfarikaini Yunus, Ahmad Yusmini Yusramizza, Yusramizza Zahra, Putri Fatimah Zubairi, Ahmad Ihzul