KINERJA JANGKA PANJANG IPO DI PAPAN UTAMA DAN PENGEMBANGAN

Abstract

Previous studies reveal that the long-run performance of Indonesian initial public offerings (IPOs) underperformed. Prior studies only utilize IHSG indices and equally-weighted returns. Our paper seeks to shed light on by undertaking both market and matching-firm benchmarks. We employ IHSG, Main Board, and Development Board indices as market benchmarks. Matching-firms are represented by Indonesian Stock Exchange-listed securities that are to some extent matched by market capitalization with each IPO. Further, our study employs both value- and equally-weighted returns. Research period is between 2005 and 2007. Sample comprises 26 IPOs firms listed on the main board and 16 IPO firms listed on the development board. The results show that the long-run performance of Indonesian IPOs depends on the measurement methods and the portfolio benchmarks. Further, the long-run performance of IPOs listed on the main board is better rather than on the development board.