Book Building vs Fixed Price Revisited: The Case of Indonesia

Book Building vs Fixed Price Revisited: The Case of Indonesia

We revisited the evidence on how IPO methods affect return (opening, close and initial return) and why does return affects the volatility in Indonesia. As one of the emerging countries, Indonesia had a changing regulation regarding the IPO method from the fixed price to the book building method sinc...

Full description

Saved in:
Bibliographic Details
Main Authors: Tri Utami, Widya Dharma, Arief Surya Irawan
Format: Article
Language:English
Published: Muhammadiyah University Press 2022-04-01
Series:Riset Akuntansi dan Keuangan Indonesia
Subjects:
ipo
ipo methods
indonesia
clustering effect
return-volatility relationship
Online Access:https://journals2.ums.ac.id/index.php/reaksi/article/view/9712
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:We revisited the evidence on how IPO methods affect return (opening, close and initial return) and why does return affects the volatility in Indonesia. As one of the emerging countries, Indonesia had a changing regulation regarding the IPO method from the fixed price to the book building method since October 2000. Using a clustering regression analysis method, we find that the opening price and initial price in the book building period are significantly higher than that in the fixed price period. Furthermore, there is no effect of the opening return on the volatility. In contrast, closing return affects the volatility positively, while the relationship between initial return and volatility shows somewhat mixed results.
ISSN:2541-6111

Similar Items