The Impact of Sole Underwriter Reputation on Average Stock Price Movements Since Listing on the Indonesian Capital Market
DOI:
https://doi.org/10.62007/joumi.v4i3.1068Keywords:
single underwriter reputation, IPO, stock price movement, Indonesia Stock Exchange.Abstract
This study examines the effect of single underwriter reputation on the average stock price movement during the first year since listing in the Indonesian capital market. Using a quantitative associative-causal design, it draws on secondary data from idx.co.id. The population comprises all 179 firms that conducted initial public offerings (IPOs) on the Indonesia Stock Exchange during 2022–2024; through purposive sampling, 29 firms underwritten by a single underwriter were selected. Single underwriter reputation is measured as a composite index of market share by IPO value and market share by IPO frequency, while the dependent variable is the average monthly stock price over the twelve months following listing. The data were analyzed using simple linear regression in SPSS. The results show that single underwriter reputation has a positive and significant effect on the average post-listing stock price movement (β = 0.376; p = 0.044), explaining 14.1% of its variation. These findings confirm that underwriter reputation operates as a signaling and certification mechanism whose market valuation persists beyond the first trading day into the first year of listing. The study contributes recent emerging-market evidence on the sole-underwriter setting, in which the certification role remains undivided.
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