<![CDATA[This study tested the hypothesis that was developed in the context of asymmetric
information among market players in the Indonesian capital market. The hypothesis proposed in
this research is the influence of market conditions, the reputation of underwriters, auditor
reputation, and influence of these three variables simultaneously on the level of underpriced.
Dat collection methods using secondary data, and is used as a sample of 36 companies from
2002 to 2004. Sources of data obtained from the Indonesian Capital Market Directory, the JSX
Statistics, and FE UGM PPA database. Data analysis techniques used are simple regression
analysis of single and double. In processing the data using SPSS.
The results showed that the market conditions and reputation of the auditor does not
affect negatively. While the underwriter reputation and the use of these three variables (market
conditions, underwriter reputation, and reputation of the auditor) is jointly negative effect, this
means that if something else fixed, the higher reputation underwriter will cause a decrease in
initial returns.
Keywords: Indonesia´s capital market, capital market participants.]]>
