Abstract :
The globalization that is supported by sophisticated technology and
communications causing competitiveness between companies. This condition will
motivate the company to expand their business in order to survive in competition.
The company may owe money to the bank or increasing the number of shares by
issuing the new shares to solve this problem. The aim of this reasearch is to
examine the influence of Firm Size and Financial Performance with indictor are
ROA, Financial Leverage and Liquidity on Underpricing in Indonesian Stock
Exchange from 2007-2011 during IPO?s periode. The population of this research
is all listed company in Indonesian Stock Exchange which launched Initial Public
Offering during 2007 ? 2011 with total sampleis 74 observations. The hypothesis
of this research is tested by multiple regression analysis. The result of this
research showed that Firm Size, ROA, Financial Leverage and Liquidity are
influence the underpricing.
Keyword : Underpricing, Firm Size, ROA, Financial Leverage, Liquidity