The Effect of Inflation Levels on Stock Underpricing Decisions in Companies Conducting Initial Public Offerings in Indonesia
Keywords:
Inflation, Underpricing, Initial Public OfferingAbstract
This study aims to analyze the effect of inflation rates on stock underpricing decisions in companies conducting Initial Public Offerings (IPOs) on the Indonesia Stock Exchange during the period 2020 to 2024. This study uses a quantitative approach with a simple linear regression analysis method. The sample for this study consisted of 30 companies conducting IPOs during the observation period, with secondary data obtained from financial reports, company prospectuses, and Indonesia Stock Exchange publications. The results show that the inflation rate has a positive and significant effect on the level of underpricing. The results found that the inflation rate has an effect of 0.228 with a significance value of 0.003 <0.05. This explains that 22.8% of the factors influencing underpricing decisions in companies are inflation rates, but 77.2% are influenced by other factors such as interest rates, exchange rates, and market sentiment.
References
Ayuwardani, R. P., & Isroah, I. (2018). The influence of financial and non-financial information on stock price underpricing in companies conducting initial public offerings (Empirical study of public companies listed on the Indonesia Stock Exchange in 2011-2015). Nominal: Barometer of Accounting and Management Research, 7(1), 143-158.
Central Bureau of Statistics. (2024). The year-on-year (y-on-y) inflation in December 2023 was 2.61 percent. https://www.bps.go.id/en/pressrelease/2024/01/02/2299/the-year-on-year--y-on-y--inflation-in-december-2023-was-2-61-percent--the-highest-inflation-saw-in-sumenep-at-5-08-percent-.html
Baig, A. S., & Chen, M. (2022). Did the COVID-19 pandemic (really) positively impact the IPO Market? An Analysis of information uncertainty. Finance Research Letters, 46, 102372.
Bank Indonesia. (2024). Inflation overview and targets. https://www.bi.go.id/en/function-utama/moneter/inflasi/default.aspx
Darmawan, D., & Bustaman, Y. (2024). Impact of ownership structure, underwriter reputation and IPO proceed size to the level of IPO underpricing. Diponegoro International Journal of Business, 7(1), 1-10.
Dwijaya, N., & Cahyadi, H. (2021). Factors Influencing the Level of Underpricing: An Empirical Study of Family Firm IPOs on the IDX. Journal of Economics, 26(11), 337-394.
Hadi, S. (2019). Factors Influencing Initial Public Offering Underpricing in Companies Conducting Initial Public Offerings. Jayakarta Journal of Accounting and Taxation, 1(1), 64-74.
Hadi, H., & Atikah, S. (2024). Underpricing Anomalies: A Study of Companies that IPO on the Indonesian Stock Exchange. International Journal of Business and Applied Economics, 3(4), 512-524.
Isynuwardhana, D., & Febryan, F. V. (2022). Factors influencing underpricing level during IPO in Indonesia Stock Exchange 2018-2019. The Indonesian Accounting Review, 12(1), 87-98.
Marpaung, N. F., Purba, R. B., & Maisyarah, R. (2024). The Influence Of Profitability, Liquidity And Company Growth On Stock Prices In Construction Services Companies Listed On The Indonesian Stock Exchange Period 2019-2022. Proceedings of the Scientific Accounting Symposium, 298-310.
Mayasari, V. (2019). The Effect of Inflation and SBI Interest Rates on Stock Prices in Manufacturing Companies in the Food and Beverage Sub-Sector that Go Public on the Indonesia Stock Exchange. Accounting and Management, 14(2), 31-49.
Meiditambua, M. H., Centauri, S. A., & Fahlevi, M. R. (2023). The effect of inflation on economic growth: an Indonesian perspective. Jurnal Acitya Ardana, 3(1), 17-26.
Novriyanti, R. F., Maisyarah, R., & Nasution, N. A. (2025). The Effect of Financial Management Comprehension, Financial Accounting System, and Internal Supervision on Financial Report Performance of the Province Government of North Sumatra. INFOCUM, 13(05), 1379-1395.
Pujadi, A. (2022). INFLATION: THEORY AND POLICY. Journal of Diversity Management, 2(2), 73–77.
PwC Indonesia. (2024). Indonesia IPO Markets Watch H1 2024. https://www.pwc.com/id/en/publications/capital-markets/indonesia-ipo-markets-watch-2024-h1.pdf
Salim, A., Fadilla, F., & Purnamasari, A. (2021). The effect of inflation on Indonesian economic growth. Ekonomica Sharia: Journal of Islamic Economic Thought and Development, 7(1), 17-28.
Sekarsari, D., Zahra, F. A. A., Ayuningtyas, F. R., & Fadilla, A. (2024). Analysis of inflation dynamics and its implications for economic stability in Indonesia. Journal of Macroeconomics and Social Development, 1(3), 1-9.
Simanungkalit, E. F. B. (2020). The effect of inflation on economic growth in Indonesia. Journal of Management: Small and Medium Enterprises (SMEs), 13(3), 327-340.
Wenehen, C., Ekananda, M., & Safitri, J. (2025). The Influence of Internal and Macroeconomic Factors on IPO Stock Underpricing on the Indonesia Stock Exchange: A Sectoral Approach for 2022–2024. Journal of Accounting and Finance Management, 6(3), 1816–1832.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Muhammad Irza Aryasta, Rahima Br. Purba; M. Irsan Nasution
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
International Conference On Islamic Community Studies, Education and Science, its website, and the articles published therein are licensed under a 
