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...
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| Format: | Article |
| Language: | English |
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Muhammadiyah University Press
2022-04-01
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| Series: | Riset Akuntansi dan Keuangan Indonesia |
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| Online Access: | https://journals2.ums.ac.id/index.php/reaksi/article/view/9712 |
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| _version_ | 1850100595795427328 |
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| author | Tri Utami Widya Dharma Arief Surya Irawan |
| author_facet | Tri Utami Widya Dharma Arief Surya Irawan |
| author_sort | Tri Utami |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-5691a4f97b3c48bc85c5052e97be7add |
| institution | DOAJ |
| issn | 2541-6111 |
| language | English |
| publishDate | 2022-04-01 |
| publisher | Muhammadiyah University Press |
| record_format | Article |
| series | Riset Akuntansi dan Keuangan Indonesia |
| spelling | doaj-art-5691a4f97b3c48bc85c5052e97be7add2025-08-20T02:40:15ZengMuhammadiyah University PressRiset Akuntansi dan Keuangan Indonesia2541-61112022-04-01394910.23917/reaksi.v7i1.171129775Book Building vs Fixed Price Revisited: The Case of IndonesiaTri Utami0Widya Dharma1Arief Surya Irawan2Accounting, Faculty of Economy, Universitas Widya DharmaAccounting, Faculty of Economy, Universitas Widya DharmaAccounting, Faculty of Economics and Business, Universitas Gadjah MadaWe 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.https://journals2.ums.ac.id/index.php/reaksi/article/view/9712ipoipo methodsindonesiaclustering effectreturn-volatility relationship |
| spellingShingle | Tri Utami Widya Dharma Arief Surya Irawan Book Building vs Fixed Price Revisited: The Case of Indonesia Riset Akuntansi dan Keuangan Indonesia ipo ipo methods indonesia clustering effect return-volatility relationship |
| title | Book Building vs Fixed Price Revisited: The Case of Indonesia |
| title_full | Book Building vs Fixed Price Revisited: The Case of Indonesia |
| title_fullStr | Book Building vs Fixed Price Revisited: The Case of Indonesia |
| title_full_unstemmed | Book Building vs Fixed Price Revisited: The Case of Indonesia |
| title_short | Book Building vs Fixed Price Revisited: The Case of Indonesia |
| title_sort | book building vs fixed price revisited the case of indonesia |
| topic | ipo ipo methods indonesia clustering effect return-volatility relationship |
| url | https://journals2.ums.ac.id/index.php/reaksi/article/view/9712 |
| work_keys_str_mv | AT triutami bookbuildingvsfixedpricerevisitedthecaseofindonesia AT widyadharma bookbuildingvsfixedpricerevisitedthecaseofindonesia AT ariefsuryairawan bookbuildingvsfixedpricerevisitedthecaseofindonesia |