Future studies can extend the analysis period and consider other factors that may influence underpricing

Oct 13, 2025 by wbrum.org 13 views

PT BRI Tbk's Shares Underpricing Determinant Analysis: The Role of Interest Rates and Exchange Rates

Introduction

In the world of investment, underpricing stock is a phenomenon that attracts attention. Underpricing occurs when the stock price offered at the Primary Market (IPO) is lower than the stock price on the secondary market on the first day of trading. This phenomenon benefits the initial shareholders, because they can sell their shares at a higher price in the secondary market. Understanding the determinants of underpricing is crucial for investors, capital market regulators, and issuers to make informed decisions.

This research focuses on determinant analysis underpricing shares of PT. BRI Tbk. For the period January 2006 to December 2008. This study aims to identify the factors that influence underpricing shares of PT. BRI Tbk., With the hope of providing useful information for capital market investors and regulators. The analysis of underpricing determinants can help investors to optimize their profits, capital market regulators to formulate more effective policies, and issuers to increase the attractiveness of their shares.

Methodology

This study uses linear regression analysis using the Ordinary Least Squares (OLS) method with the help of EViews 5.1 software. The variables used in this study are:

*** Initial Return (IR): **Demonstrate the profits of the initial shareholders, calculated as the difference in stock prices in the primary market and the secondary market on the first day of trading. *** SBI Rate (T-1): **The previous period Bank Indonesia Certificate (SBI) interest rate, which reflects interest rates in the money market. *** Inflation: **The level of inflation that reflects people's purchasing power and economic stability. *** Exchange Rate Rp/USD: **The exchange rate of the rupiah against the United States dollar reflects macroeconomic conditions.

Analysis Results

The results of the regression analysis show that the coefficient of determination (R-squared) is 0.79 or 79%. This means that the SBI Rate (T-1) variable, inflation, and the exchange rate of Rp/USD can explain 79% variations Initial Return. The analysis results indicate that the SBI Rate (T-1) and the exchange rate of Rp/USD have a significant and negative influence on initial return.

Further analysis shows that the SBI Rate (T-1) and the exchange rate of Rp/USD have a significant and negative influence on initial return. That is, the higher the SBI rate and the exchange rate of Rp/USD, the lower initial return. Meanwhile, the inflation variable does not show a significant effect on initial return. The results of this study have important implications for investors, capital market regulators, and issuers.

Implications

The results of this study have important implications for investors, capital market regulators, and issuers.

Investor: Investors who plan to invest in shares of PT. BRI Tbk., Or other shares, it is necessary to pay attention to the factors that influence underpricing, such as interest rates and exchange rates. This information can help investors in making investment decisions that are more appropriate and optimize profits. Capital Market Regulator: The results of this study can be taken into consideration for the Capital Market Regulator in formulating a more effective policy in regulating the capital market and protecting investors. Issuer: Issuers can learn from the results of this study to understand the factors that influenceunderpricingshares and take the right steps to increase the attractiveness of their shares in the eyes of investors.

Conclusion

This study shows that the SBI Rate (T-1) and the exchange rate of Rp/USD have a significant and negative influence on underpricing shares of PT. BRI Tbk. Investors need to pay attention to macroeconomic factors, especially interest rates and exchange rates, before deciding to invest in stocks. Understanding the determinants of underpricing is crucial for investors, capital market regulators, and issuers to make informed decisions.

Recommendation

Investors are encouraged to increase understanding of macroeconomic factors that can affect stock prices.
Capital market regulators need to continue to monitor macroeconomic conditions and consider the factors that influence underpricing In formulating policies related to capital markets.
Issuers need to pay attention to macroeconomic factors and appropriate strategies to attract investors. By understanding the determinants of underpricing, investors can make more appropriate investment decisions, capital market regulators can formulate more effective policies, and issuers can increase the attractiveness of their shares in the eyes of investors.

Limitation of the Study

This study has some limitations. The analysis is limited to the period of January 2006 to December 2008. The study only focuses on the determinants of underpricing shares of PT. BRI Tbk. and does not consider other factors that may influence underpricing. Future studies can extend the analysis period and consider other factors that may influence underpricing.

Future Research Directions

Future studies can extend the analysis period and consider other factors that may influence underpricing. The analysis of underpricing determinants can be applied to other companies and industries to provide a more comprehensive understanding of the factors that influence underpricing.

Conclusion

This study provides a comprehensive analysis of the determinants of underpricing shares of PT. BRI Tbk. The results of this study have important implications for investors, capital market regulators, and issuers. Understanding the determinants of underpricing is crucial for investors, capital market regulators, and issuers to make informed decisions.
PT BRI Tbk's Shares Underpricing Determinant Analysis: The Role of Interest Rates and Exchange Rates - Q&A

Introduction

In our previous article, we discussed the determinant analysis of PT BRI Tbk's shares underpricing, focusing on the role of interest rates and exchange rates. This Q&A article aims to provide further clarification and insights into the analysis, addressing common questions and concerns.

Q: What is underpricing, and why is it important?

A: Underpricing occurs when the stock price offered at the Primary Market (IPO) is lower than the stock price on the secondary market on the first day of trading. This phenomenon benefits the initial shareholders, as they can sell their shares at a higher price in the secondary market. Understanding the determinants of underpricing is crucial for investors, capital market regulators, and issuers to make informed decisions.

Q: What are the key factors that influence underpricing?

A: The analysis of this study shows that the SBI Rate (T-1) and the exchange rate of Rp/USD have a significant and negative influence on initial return. This means that higher interest rates and exchange rates can lead to lower initial returns, making underpricing more likely.

Q: How can investors benefit from understanding underpricing determinants?

A: By understanding the factors that influence underpricing, investors can make more informed investment decisions, optimizing their profits and minimizing potential losses. This knowledge can also help investors to identify potential opportunities and risks in the market.

Q: What role do capital market regulators play in regulating underpricing?

A: Capital market regulators can use the findings of this study to formulate more effective policies in regulating the capital market and protecting investors. By monitoring macroeconomic conditions and considering the factors that influence underpricing, regulators can create a more stable and transparent market environment.

Q: How can issuers benefit from understanding underpricing determinants?

A: Issuers can learn from the results of this study to understand the factors that influence underpricing and take the right steps to increase the attractiveness of their shares in the eyes of investors. By paying attention to macroeconomic factors and implementing effective strategies, issuers can improve their chances of success in the market.

Q: What are the limitations of this study?

A: This study has some limitations, including the analysis period (January 2006 to December 2008) and the focus on the determinants of underpricing shares of PT BRI Tbk. Future studies can extend the analysis period and consider other factors that may influence underpricing.

Q: What are the future research directions for this study?

A: Future studies can extend the analysis period and consider other factors that may influence underpricing. The analysis of underpricing determinants can be applied to other companies and industries to provide a more comprehensive understanding of the factors that influence underpricing.

Conclusion

This Q&A article provides further clarification and insights into the determinant analysis of PT BRI Tbk's shares underpricing, focusing on the role of interest rates and exchange rates. By understanding the determinants of underpricing, investors, capital market regulators, and issuers can make informed decisions and optimize their profits.

Recommendation

Investors are encouraged to increase understanding of macroeconomic factors that can affect stock prices.
Capital market regulators need to continue to monitor macroeconomic conditions and consider the factors that influence underpricing in formulating policies related to capital markets.
Issuers need to pay attention to macroeconomic factors and implement effective strategies to attract investors.

By understanding the determinants of underpricing, investors can make more informed investment decisions, capital market regulators can formulate more effective policies, and issuers can increase the attractiveness of their shares in the eyes of investors.