| Companies will expand their business if they had been achieved optimal performance, so they need additional of funding. One of alternatives to increase capital is with offering stocks to public which is called Initial Public Offering (IPO). There is a phenomenon underpricing in IPO, which offering stock price is lower than closing price in first day trading. This research used proxy initial return and 15 days return after IPO to measure degree of underpricing. So, the objective of research is examine factors that influence initial return and 15 days return after IPO. This research used 5 independent variables that had been predicted had influence to initial return and 15 days return after IPO. There are earnings per share, financial leverage, offering price value, presence of audit committee and retained equity. The sampling method that used is purposive sampling. The samples for this research are companies listed in Jakarta Stock Exchange in 2005-2009 that occurred underpricing. This research also used secondary data. Model used in this research is multiple regressions linier. The analysis techniques that used in this research are comparing two regressions: F-test and t-test. This result of research showed that financial leverage and retained equity had negative and significant effect to initial return, instead earnings per share, offering price value and presence of audit committee. Otherwise, financial leverage and retained equity had negative and significant effect to 15 days return after IPO, instead earnings per share, offering price value and presence of audit committee. |