How is the Impact of the Corporate Governance Mechanism on IPO Underpricing? (Empirical Study on Companies conducting IPOs on the Indonesia Stock Exchange 2010-2019)

Kiki Satria Hutama Putra


The purpose of this study is to examine how the influence of corporate governance mechanisms on the level of underpricing of IPO companies in Indonesia. This study examines 301 company IPOs during the period 2010 to 2019 using secondary data collected through annual reports and company IPO prospectus on the Indonesia Stock Exchange. Sampling was done by purposive sampling technique with a final sample of 72 companies. Multiple linear regression analysis was used to examine the impact of corporate governance mechanisms on IPO underpricing. The results showed that female directors had a significant effect on underpricing the company's IPO. while the board of commissioners, the independence of the board of commissioners, the board of directors, the age of the board of directors, the board of the audit committee and the age of the company have no significant effect on the underpricing of the company's IPO.


initial public offerings (IPO); underpricing; corporate governance

Full Text:



Ahmad-Zaluki, N. A. (2008). Post-IPO Operating Performance and Earnings Management. International Business Research, 1(2), 39-48.

Aini, Shoviyah Nur. 2013. Faktor-Faktor yang Mempengaruhi Underpricing Saham Pada Perusahaan IPO di BEI Periode 2007-2011. Jurnal Ilmiah Manajemen, Vol.1, No. 1, Hal.89.

Alanazi, A. S, Liu, B. dan Forster, J. (2011). The financial performance of Saudi Arabian IPOs. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), 146-157.

Ali Syaiful, Hartono dan Jogiyanto. 2003. Pengaruh Pemilihan Metode Akuntansi terhadap Tingkat Underpricing Saham Perdana. Jurnal Riset Akuntansi Indonesia. Vol 6: 41-53.

Anogara, P., dan Pakarti, P. (2001). Pengantar Pasar Modal. Jakarta: Rineka Cipta.

Arora, N. and Singh, B. (2020), “Corporate Governance and underpricing of small and medium enterprises IPOs India”, Journal Corporate Governance, Vol. 20 Issue 3.

Auliya, R. dan Januarti, I. (2015), “Pengarum Mekanisme Corporate Governance Terhadap Tingkat Underpricing IPO. Studi Empiris Pada Perusahaan yang IPO di Bursa Efek Indonesia Tahun 2009-2014). Thesis, Fakultas Ekonomi dan Bisnis.

Brau, J. C., and Fawcett, S.E. (2006). Initial Public Offerings: An Analysis of Finance, 61(1), 399-436.

Cai, J. and Wei, K. C. J. (1997). The investment and operating performance of Japanese initial public offerings. Pacific Basin Finance Journal, 5(4), 389-417. https:

Certo, S.T. (2003), “Influencing initial public offering investors with prestige: signaling with board structures”, Academy of Management Review, Vol. 28 No. 3, pp. 432-446.

Certo, S.T., Daily, C.M. and Dalton, D.R. (2001), “Signalling firm value through board structure: an investigation of initial public offerings”, Entrepreneurship Theory & Practice, Vol. 26, pp. 33-50.

Certo, S.T., Daily, c.M., Cannella, A.A.jr and dalton, D.R. (2003), “Giving money to get money: how CEO stock options and CEO equity enhance IPO valuations”, Academy of Management Journal, Vol. 46 No. 5, pp. 643-653.

Chahine, S. and Filatotchev, I. (2008), “The effects of information disclouser and board independence on IPO discount:, Journal of Small Business Management, Vol. 46 No.2, pp. 219-241.

De Luis-Carnicer, P., Martinez-Sánchez., Á., Pérez- Pérez, M., & JoséVela-Jiménez, M. (2008), “Gender diversity in management:Curvilinear relationships to reconcile findings”, Gender in Management: An International Journal, 23(8), 583-597.

Doski, S.A. (2014). The effect of Initial public offering on company performance: A case study on Asia cell in Kurdistan Region. Research Journal of Finance and Accounting, 5(18), 103-117.

Duque, J. dan Almeida, M. (2000). Ownership Structure And Initial Public Offerings In Small Economies-The Case Of Portugal.

Filatotchev, I. and Bishop, K. (2002), “Board composition, share ownership, and underpricing of UK IPO firm”, Strategic Management Journal, Vol. 23 No. 10, pp. 941-955.

Filatotchev, I. and Wright, M. (2005), The Life Cycle of Corporate Governance, Edward Elgar Publishing.

Forum for Corporate Governance in Indonesia (FCGI), (2001), Seri Tata Kelola Peruahaan (Corporte Governance), Edisi ke-2 Jakarta.

Ghozali dan Manzur. (2002). Analisis Faktor-Faktor Yang Mempengaruhi Tingkat Underpriced Di Bursa Efek Jakarta. Jurnal Bisnis dan Akuntansi. Vol 4 No 1. April 2002

Gill De Albornoz, B., and Pope, P. F. (2004). The Determinants of The Going Public Decision: Evidence from The U.K (AD No. 22).

Gumanti, T. A. (2002). Underpicing dan biaya-biaya di sekitar initial public offering. Journal Ekonomi Manajemen Dan Akuntansi Wahana, 5(4), 135-147.

Handa, R. and Singh, B. (2015), “Women directors and IPO underpricing: evidence from Indian markets”, Gender in Management: An International Journal, Vol. 30 No. 3, pp. 186-205.

Hearn, B. (2011), “The impact of corporate governance measures on the performance of West African IPO Firms”, Emerging Market Review, Vol. 12 No.2, pp. 130-151.

Hillman, A.J., Cannela, A.A. and Harris, I.C. (2002), “Women and racial minoritas in the boardroom: how do directors differ?”, Journal of Management, Vol. 28 No. 6, pp. 747-763.

Hoobler, J. M., Masterson, C. R., Nkomo, S. M., & Michel, E. J. (2008), “The business case dor women leaders: Meta-analysis, research critique, and path forward”, Journal of Management, 44(6), 2473-2499.

Howton, S.D., Howton, S.W. and Olson, G.T. (2001), “Board ownership and IPO returns”, Journal of Economics and Finance, Vol. 25 No.1, pp. 100-114.

Jain, B.A., and Kini, O. (1994). The Post-Issue Operating Performance of IPO Firms. American Finance Association, 49(5), 1699-1726.

Jensen, M.C. and Meckling, W.H. (1976), “Theory of the firm: managerial behavior, agency costs and ownership structure”, Journal of Financial Economics, Vol. 33 No. 4, pp. 305-360

Jiraporn, P., Singh, M. and Lee, C.I. (2009), “Ineffective corporate governance: director busyness and board committee memberships”, Journal of Banking & Finance, Vol. 33 No. 5, pp.819-828.

Kang. H, Cheng. M. and Gray. S. J. (2007), “Corporate governance and board composition: diversity and independence of Australian boards”, Corporate Governance An International Review. Vol. 15 No. 2, pp. 194-207.

Kesner, I.F. (1998), “Directors characteristic and committee membership: an investigation of type, occupation, tenure and gender”, Academy of Management Journal, Vol. 31 No. 1, pp.66-84.

Kim, K.A. Kitsabunnarat, P. dan Nofsinger, J. R. (2004). Ownership and operating performance in an emerging market: evidence from Thai IPO firms. Journal of Corporate Finance, 10(3), 355-381.

Kosnik, R.D. (1990), “Effects of board demography and directors’ incentives on corporate greenmail decisions”, The Academy of Management Journal, Vol. 33 No. 1, pp. 129-150.

Li, L. and Naughtong, T. (2007), “Going public with good governance: evidence from China”, Corporate Governance: An International Review, Vol. 15 No.6, pp. 1190-1202.

Lin, CP dan Chuang, CM (2011), “Principal-principal conflicts and IPO pricing in an emerging economy”, Corporate Governance: An International Review, Vol. 19 No. 6, pp. 585-600.

Maksimovic, V., and Pichler, P. (2001). Technological Innovation and Initial Public Offerings. The Review of Financial Studies, 14(2)

Martani, Dwi. Ika, Leony Sinaga. Dan Akhmad Syahroza. 2012. “Analysis on Factors Affecting IPO Underpricing and their Effects on Earning Presistence”. World Review of Business Research, Vol. 2. No.2. March 2012. Pp. 1-15.

Mikkelson, W. H., Megan Partch, M., dan Shah, K. (1997). Ownership and operating performance of companies that go public. Journal of Financial Economic, 44(3), 281-307.

Mohan, N. J., and Chen, C. R. (2004), “Are IPOs priced differently based upon gender? Journal of Behavioral Finance, 5(1), 57-65.

Muth, M. M. and Donaldson, L. (1998), “Stewardship theory and board structure: a contingency other demographics”, Corporate Governance, Vol. 152 No.2, pp. 499-521.

Organization for Economic Coorporation and Development. (2004), the OECD Principles of Corporate Governance. Retrieved March 5, 2016 from.

Pastusiak, R., Bolek, M., Malaczewski, M., and Kacprzyk, M. (2016). Company Profitabilitas Before and After IPO. Is it a Windows Dressing or Equity Dilution Effect? Prague Economic Papers, 25(01), 1-13.

Prastiwi, A., dan Kusuma, 2001. Analisis Kinerja Surat Berharga setelah Penawaran Perdana (IPO) di Indonesia. Jurnal Ekonomi dan Bisnis Indonesia, Vol. 16(2). Pp 177-187.

Priyatno, D. (2013). Analisis Korelasi, Regresi dan Multivariate dengan SPSS. Yogyakarta : Gava Media.

Purwanto. Agustiningsih, S. W, Insani. S.F, dan Wahyono. B. (2015), Fenomena Underpricing pada Perusahaan yang Go Public di Indonesia. Ekonomi Bisnis & Kewirausahaan, 3. (1): hal. 22-43.

Rahmida, A.R. (2012), “Pengaruh Karakteristik Dewan Komisaris, Keberadaan Komite Audit, Kualitas Auditor Eksternal, dan Monitoring Bank terhadap Underpricing saat Initial Public Offering”. Tesis Magister Manajemen Universitas Indonesia. Hal 1-11.

Ratu, I. D. dan Nono, S. (2019), “Pengaruh Initial Public Offering (IPO) Terhadap Kinerja Perusahaan”, Jurnal Riset Akuntansi dan Keuangan, Vol. 7, No.1, 2019, 19-28.

Roosenboom, P.G.J., van der Goot, L.R.T., dan Mertens, G. (2003). Earnings management and Initial Public Offerings: Evidance from the Netherlands. The International Journal of Accounting: Education and Research, 38(3), 243-266.

Schrader, CB, Blackburn, VB and Iles, P. (1997), “Women in management and firm financial performance: an exploratory study”, Journal of Managerial Issues, Vol. 9 No. 3, pp. 355-376.

Singh, V. and Vinnicombe, S. (2004), “Why so few women directors in top UK boardrooms? Evidence and theoretical explanations”, Corporate Governance: An International Review, Vol. 12 No.4, pp. 479-488.

Sukandar, Panky Pradana. (2014). Pengaruh Ukuran Dewan Direksi dan Dewan Komisaris Serta Ukuran Perusahaan Terhadap Kinerja Keuangan Perusahaan.

Sulistyanto, S., dan Wibisana, H. (2003). GOOD CORPORATE GOVERNANCE: Berhasilkah Diterapkan Di Indonesia? Jurnal Widya Warta, 1(2), 1-9.

Wahyusari, Ayu. (2013), “Analisis Faktor-Faktor Yang Mempengaruhi Underpricing Saham Saat IPO Di BEI. Accounting Analysis Journal. Vol. 2 No. 4.

Wang, C. (2005). Ownership and operating performance of Chinese IPOs. Journal of Banking & Finance, 29(7), 1835-1856.

Yatim, P. (2008), “Underpricing and board structures: an investigation of Malaysian IPOs”, ECMLG2008-Procedings of the 4th European Conference on Management Leadership and Governance: ECMLG, Academic Conferences, p. 213.

Zelechowski, D. D., and Bilimoria, D. (2003), “The experience of women corporate inside directors on the boards of Fortune 1,000 firms. Women in Management Review, 18(7), 376-381.


Article Metrics

Abstract view : 60 times
PDF - 25 times


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.