Underpricing in Indonesia: A Systematic Literature Review

M. Reza Oktananda; Evi  Gantyowati

doi:10.14414/jebav.v27i2.4545

Authors

M. Reza Oktananda Sebelas Maret University, Surakarta, Central Java, Indonesia
Evi Gantyowati Sebelas Maret University, Surakarta, Central Java, Indonesia

DOI:

https://doi.org/10.14414/jebav.v27i2.4545

Keywords:

Underpricing, Systematic Literature Review, Charting feld

Abstract

This study employs the charting field method to empirically examine the evolution of underpricing research in Indonesia over the past decade (2014-2023). The research is categorized into four main areas: the development of underpricing studies in Indonesia, theoretical mapping, measurement mapping of underpricing, and causal relationship mapping. The findings reveal that underpricing research in Indonesia has advanced over the last ten years, albeit with fluctuations in the number of publications each year. The three most commonly applied theories in this field are signaling theory, information asymmetry theory, and agency theory. Initial return is the most frequently used measure of underpricing, accounting for 79% of the studies. Additionally, the causal relationship mapping highlights that many variables produce inconsistent results, indicating a research gap that future scholars can address. This study lays the groundwork for further exploration of the variables that influence underpricing, particularly by investigating underwriter reputation as a moderating factor. The research has practical implications for various stakeholders: Initial Public Offering (IPO) companies can use the findings to design more effective strategies, investors can rely on them to guide their investment decisions, and regulators can leverage the insights to develop policies that enhance transparency in the IPO process.

Author Biographies

M. Reza Oktananda, Sebelas Maret University, Surakarta, Central Java, Indonesia

M. Reza Oktananda, M.Ak is a recent graduate who has just finished his S2 studies. He obtained his bachelor's degree in Accounting at Universitas Muhammadiyah Bengkulu in 2021 and his master's in accounting at Sebelas Maret University in 2024. He has several scientific publications, both in international journals and accredited national journals. Although he is not currently starting a professional career in accounting, he is an active investor in the Indonesian capital market.
Evi Gantyowati, Sebelas Maret University, Surakarta, Central Java, Indonesia

Dr Evi Gantyowati, M.Si. Ak., CA., CIA is an associate professor in Accounting Department, Faculty of Economics and Business, Universitas Sebelas Maret (UNS), Surakarta, Indonesia. She got her first degree from Economic Faculty, Universitas Sebelas Maret, Surakarta, Indonesia at year 1990. She hold master degree (Master of Science) from Gadjah Mada University, Indonesia, 1998 and achieved her Doctoral degree from Diponegoro University, Indonesia at year 2009. Currently, Dr. Evi teaches undergraduate, master and doctoral students in Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia. She also actively conducting research, publication and doing community service activities. Dr. Evi has numerous research publication in international journal as well as national accredited journals. She had experience as accountant professional: Financial and Human Resources Vice Director at Universitas Sebelas Maret Hospital, Treasurer of cooperative firm, and Internal auditor one of private bank.

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