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Journal : Journal of Enterprise and Development (JED)

What factors affecting firm value during IPOs? A study at the Indonesia Stock Exchange Latif, Abdul; Permana, Indra; Hidayah, Zulfa Zakiatul
Journal of Enterprise and Development (JED) Vol. 5 No. 3 (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 | DOI: 10.20414/jed.v5i3.7519

Abstract

Purpose — The objective of this study is to examine the factors that impact the value of a company over both the short and long term. These factors include variables such as the company's size, the reputation of the underwriter and auditor, the industry sector in which it operates, and the number of shares outstanding during the initial public offering (IPO).Method — In this study, a quantitative causality approach with analytical properties is employed as the method of analysis. The population under investigation consists of companies that conducted initial public offerings (IPOs) between the years 2020 and 2022. A sample size of 113 companies is selected using a specific sampling approach for research purposes. To analyze the data, a binary logistic regression model is applied, along with the use of statistical tools.Result — The conducted research has yielded several findings. Firstly, it indicates that the variable of company size does not have a significant impact. Secondly, the variable of underwriter reputation also does not have a significant effect. Thirdly, the variable of auditor reputation does not significantly influence firm value. Fourthly, the stock variable does not significantly affect firm value. Lastly, the research highlights that the industry sector variable has a significant impact on firm value.Contribution — The research is expected to contribute to the academic field and benefit capital market players by addressing the factors that should be considered when making investment decisions in the capital market.
Interconnected economies: Assessing the impact of major global stock exchanges and macroeconomic factors on the Indonesian stock market Latif, Abdul; Hidayah, Zulfa Zakiatul; Afandi, Dian Rachmawati
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.v6i1.9463

Abstract

Purpose — The purpose of this study is to examine the influence of global stock exchanges indices—the Dow Jones Industrial Average (DJIA) index, the Shanghai Stock Exchange (SSE) index, and the Nikkei 225 (N225) index—and macroeconomic variables (exchange rate and inflation) on the movement of the Jakarta Composite Index (JCI).Method — The data analysis method used in this study is quantitative causality with the GARCH model technique. The samples include the JCI, global stock exchanges (DJIA, SSE, N225) indices, and macroeconomic variables (exchange rate, inflation) based on monthly secondary data from 2017 to 2022, encompassing 72 months of observation.Result — The results showed that the global stock market variables of the DJIA and the SSE indices had a significant positive effect, while the N225 index had a significant effect on the JCI. Regarding macroeconomic variables, the exchange rate had a significant negative effect, whereas inflation did not affect the JCI.Novelty  — The novelty of this research, compared to previous studies, lies in the more recent research period, which spans from 2017 to 2022, and the inclusion of inflation variables, which have not been explored in prior studies.
What factors affecting firm value during IPOs? A study at the Indonesia Stock Exchange Latif, Abdul; Permana, Indra; Hidayah, Zulfa Zakiatul
Journal of Enterprise and Development (JED) Vol. 5 No. 3 (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 | DOI: 10.20414/jed.v5i3.7519

Abstract

Purpose — The objective of this study is to examine the factors that impact the value of a company over both the short and long term. These factors include variables such as the company's size, the reputation of the underwriter and auditor, the industry sector in which it operates, and the number of shares outstanding during the initial public offering (IPO).Method — In this study, a quantitative causality approach with analytical properties is employed as the method of analysis. The population under investigation consists of companies that conducted initial public offerings (IPOs) between the years 2020 and 2022. A sample size of 113 companies is selected using a specific sampling approach for research purposes. To analyze the data, a binary logistic regression model is applied, along with the use of statistical tools.Result — The conducted research has yielded several findings. Firstly, it indicates that the variable of company size does not have a significant impact. Secondly, the variable of underwriter reputation also does not have a significant effect. Thirdly, the variable of auditor reputation does not significantly influence firm value. Fourthly, the stock variable does not significantly affect firm value. Lastly, the research highlights that the industry sector variable has a significant impact on firm value.Contribution — The research is expected to contribute to the academic field and benefit capital market players by addressing the factors that should be considered when making investment decisions in the capital market.
Interconnected economies: Assessing the impact of major global stock exchanges and macroeconomic factors on the Indonesian stock market Latif, Abdul; Hidayah, Zulfa Zakiatul; Afandi, Dian Rachmawati
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.v6i1.9463

Abstract

Purpose — The purpose of this study is to examine the influence of global stock exchanges indices—the Dow Jones Industrial Average (DJIA) index, the Shanghai Stock Exchange (SSE) index, and the Nikkei 225 (N225) index—and macroeconomic variables (exchange rate and inflation) on the movement of the Jakarta Composite Index (JCI).Method — The data analysis method used in this study is quantitative causality with the GARCH model technique. The samples include the JCI, global stock exchanges (DJIA, SSE, N225) indices, and macroeconomic variables (exchange rate, inflation) based on monthly secondary data from 2017 to 2022, encompassing 72 months of observation.Result — The results showed that the global stock market variables of the DJIA and the SSE indices had a significant positive effect, while the N225 index had a significant effect on the JCI. Regarding macroeconomic variables, the exchange rate had a significant negative effect, whereas inflation did not affect the JCI.Novelty  — The novelty of this research, compared to previous studies, lies in the more recent research period, which spans from 2017 to 2022, and the inclusion of inflation variables, which have not been explored in prior studies.