THE INFLUENCE OF STOCK OFFERING QUANTITY, MARKET VOLATILITY, OVERSUBSCRIPTION RATIO AND LEVERAGE ON INITIAL RETURN

Abstract

This study aims to analyze the Effect of Stock Offering Quantity, Market Volatility, Oversubscription Ratio, and Leverage. The sample of this study was 145 companies listed on the Indonesia Stock Exchange. Sampling was done by purposive sampling. This study uses a quantitative approach using the Eviews 12 Application. The analysis technique used is multiple linear regression, with a research sample of 135 companies. The data used in this study are secondary data obtained from the Indonesia Stock Exchange website. The data in this study include Cross-Sectional data. The analysis techniques used in this study consist of classical assumption tests (Normality Test, Multicollinearity Test and Heteroscedasticity Test), multiple linear regression analysis, t-statistical test, statistical test, and R2 statistical test. All of these tests have passed all problems. Based on data analysis, the results of the study indicate that Stock Offering Quantity, Oversubscription Ratio, and Leverage do not have a significant effect on Initial Return. While Market Volatility has a significant effect on Initial Return. The results of this study emphasize the importance of market volatility as a major factor affecting initial returns on initial public offerings, so issuers and investors need to pay more attention to market conditions when making decisions. This finding also encourages regulators to increase supervision of market stability to protect investor interests.