The Influence of Underwriter and Auditor Reputations on IPO Under-pricing

摘要: Companies considering initiating public offerings (IPO) expect to raise funds and would like maximize their initial return. The asymmetry of information between parties involved in often jeopardizes potential investors’ involvement. Besides the financial factors, reputations underwriters auditors have a significant impact on return shares. This paper aims investigate measure influence underwriter auditor reputation under-pricing share prices. findings show that higher reputation, lower is shares, thus there level undervaluation. samples used are companies listed Indonesia Stock Exchange (IDX) during period 2004-2009.   study could contribute academics’, companies’ knowledge about non-financial factors prices offerings. Key Words: Underwriter Reputation, Auditor Initial Public Offering, Under-pricing, Undervaluation