8
Do
book
built
IPOs
affect
the
IPO
market
performance,
in
terms
of lower
underpricing
and lower underperformance
in the long run?
Since
there has been a tremendous growth
in book
built IPOs in Indonesia, the author
would like to investigate whether there are some association between the
characteristic of
the firms and their choice of
marketing methods. Therefore the
second research problem that the author would
like to investigate is:
Research Problem 2:
What firm’s characteristics
will determine the IPO marketing method?
The
contents
herein
this
paper
will
specifically
address
which
one
of
the
marketing
methods
tend
to
cause
underpricing
in
IPOs,
including
the
relationships
between
the
initial
returns and
long-run
performance
of
fixed
priced
and
book
built
IPOs, and
the
characteristics of firms depending on their choice of marketing method
in
determining
the
price
of
the
IPOs
to
reduce
the
information
asymmetry.
The
author
will
include all
Indonesian
firms that
have
offered IPOs
to
the
public within the
year
of 2007 to 2010.
 |