Title : OPINION DIVERGENCE, IMPRESSION MANAGEMENT AND LONG TERM PERFORMANCE OF STOCK POST INITIAL PUBLIC OFFERINGS ON THE INDONESIAN STOCK EXCHANGE
Author : Mu'minatus Sholichah
Universitas Airlangga
Item Type : Thesis (Dissertation)
Abstract
This study tests and analyzes the influence of opinion divergence and impression management on long-term post-IPO stock performance with the control variables initial return, company size, offering size, underwriter reputation and return on equity. This research uses IPO company data from 2004-2013, with 157 IPO companies in the Indonesian capital market. Testing was carried out using multiple linear regression. The results of this study found that opinion divergence has a positive effect on the long-term performance of shares after the IPO. This occurs in the long-term performance period of post-IPO shares, 12 months, the results of the regression of the main variables with long-term performance, the regression of all variables with the long-term performance of post-IPO shares with the measurement of cumulative abnormal returns, and the results of the regression of all variables with the long-term performance of post-IPO shares. by measuring 12 month buy and hold abnormal returns. These results also occur in the regression of the main variables with the long-term performance of post-IPO shares by measuring cumulative abnormal returns at 24 months and 36 months, the results of the regression of all variables with the long-term performance of shares after the IPO. After the extreme data was removed, additional findings of opinion divergence were obtained from the regression results of the main variables with the long-term performance of post-IPO shares on the 36 month cumulative abnormal return measurement and the 12 month buy and hold abnormal return measurement and the 36 month opinion divergence had a significant positive effect. Impression management does not consistently affect the long-term performance of shares post-IPO. Impression management influences the long-term performance of post-IPO shares in the 12 month period. The results of the regression of the main variable model with the long-term performance of post-IPO shares with the 12-month cumulative abnormal return measurement and the regression results of all variables with the 12-month buy and hold abnormal return measurement. This is because the IPO company carried out 50.31% impression management. After extreme data was released, the findings increased. Impression management has an increasing influence on the results of the main variable regression with the long-term performance of shares after the IPO by measuring cumulative abnormal returns for 24 months, 36 months and measuring buy and hold abnormal returns for 36 months. The regression results of all variables with the long-term performance of post-IPO shares by measuring cumulative abnormal returns for periods of 12 months, 24 months and 36 months are significant. The company characteristic variables that investors pay attention to when conducting IPO share transactions are company size and initial return. After extreme data is released, the size of the share offering has a negative influence and the reputation of the underwriter has a positive influence on the long-term performance of shares after the IPO. The implication of this study is that risk factors have an important role related to the long-term performance of shares after the IPO
Uncontrolled Keywords: Opinion divergence, impression management, company characteristics, long-term stock performance after IPO
