RETURN ON ASSETS, EARNINGS PER SHARE ON FIRM SIZE AND UNDERPRICING IN COMPANIES THAT IPO ON THE INDONESIAN STOCK EXCHANGE

Abstract

This research analyzes the direct and indirect influence of ROA, EPS, and Firm Size on Underpricing. Firm size is an intervening variable to measure indirect impact; ROA and EPS are independent variables that directly influence fit size and underpricing. This research uses financial data from 35 companies listed on the IDX in the fourth quarter of 2022. The analytical method used is path analysis with SEM AMOS software to test direct and indirect effects. The test results show that ROA and EPS have a significant direct influence on firm size. Meanwhile, ROA, EPS, and Firm size are insignificant to Underpricing. The results of the indirect effect test on ROA show that the negative slope and positive EPS are negligible. For future research, it is hoped that analysis will be carried out by expanding the sector of the study area, increasing the number of samples, using other statistical tools, and examining other factors that have not been researched, such as DER, ROE, and others.