Board Gender Diversity and IPO Price Formation in Indonesia

Penulis

  • Vivi Liu Universitas Pelita Harapan
  • Sung Suk Kim Universitas Pelita Harapan

Kata Kunci:

Gender Diversity, Underpricing, Initial Public Offering (IPO), Market Capitalization

Abstrak

This study aims to analyze the effect of gender diversity in boards of commissioners and directors on the level of underpricing on the first trading day following an Initial Public Offering (IPO) in Indonesia. The data used consist of companies that conducted IPOs in Indonesia dure in Indonesia during the period 2021-2024. The results indicate that in the Indonesian market, investors place greater emphasis on firms’ fundamental factors rather than gender-related aspects when making investment decisions at the time of an IPO. Market Capitalization, Return on Assets (ROA), and Share Overhang (SO) are found to be significant variables. This study contributes to the literature on factors influencing stock market performance during IPOs and provides practical implications for firms and regulators in formulating IPO strategies. Future research could be extended by incorporating additional factors such as financial characteristics, macroeconomic conditions, and managerial aspects in shaping investor decision-making.

Referensi

Alanazi, A.S., Liu, B. and Al-Zoubi, H.A. (2016), “IPO under-pricing in supply and demand framework: evidence from a market of retailers”, Applied Economics, Vol. 48 No. 60, pp. 5835-5849, doi: 10.1080/00036846.2016.1186794.

Alazzani, A., Hassanein, A. and Aljanadi, Y. (2017), “Impact of gender diversity on social and environmental performance: evidence from Malaysia”, Corporate Governance (Bingley), Vol. 17 No. 2, pp. 266-283, doi: 10.1108/CG-12-2015-0161.

Anh, L.H.T. and Khuong, N.V. (2022), “Gender diversity and earnings management behaviours in an emerging market: a comparison between regression analysis and FSQCA”, Cogent Business and Management, Vol. 9 No. 1, doi: 10.1080/23311975.2022.2101243.

Baker, M. and Wurgler, J. (2006), “Investor sentiment and the cross section of stock returns”, Journal of Finance, Vol. 61 No. 4, pp. 1645-1680, doi: 10.1111/j.1540-6261.2006.00885.x.

Barry, C. and Jennings, R. (1993), “The opening price performance of initial public offerings of common stock”, Financial Management, Vol. 22 No. 1, pp. 54-63, doi: 10.2307/3665965.

Ben-Amar, W., Chang, M. and McIlkenny, P. (2017), “Board gender diversity and corporate response to sustainability initiatives: evidence from the carbon disclosure project”, Journal of Business Ethics, Vol. 142 No. 2, pp. 369-383, doi: 10.1007/s10551-015-2759-1.

Byron, K. and Post, C. (2016), “Women on boards of directors and corporate social performance: a meta-analysis”, Corporate Governance: An International Review, Vol. 24 No. 4, pp. 428-442, doi: 10.1111/corg.12165.

Blankespoor, Elizabeth, Hendricks, Bradley E., Miller, Gregory S., 2017. Perceptions and price: Evidence from CEO presentations at IPO roadshows. J. Account. Res. 55 (2), 275–327

Daniel, K., Hirshleifer, D. and Teoh, S.H. (2002), “Investor psychology in capital markets: evidence and policy implications”, Journal of Monetary Economics, Vol. 49 No. 1, pp. 139-209, doi: 10.1016/S0304-3932(01)00091-5.

Githaiga, P. N. (2024). Sustainability reporting, board gender diversity and earnings management: evidence from East Africa community. Journal of Business and Socio-Economic Development, 4(2), 142–160. https://doi.org/10.1108/jbsed-09-2022-0099

Gormley, Todd A., Gupta, Vishal K., Matsa, David A., Mortal, Sandra, Yang, Lukai, 2023. The big three and board gender diversity: The effectiveness of shareholder voice. J. Financ. Econ. 149, 323–348.

Graham, John, 2022. Presidential address: Corporate finance and reality. National Bureau of Economic Research.

Moody’s, 2019. Gender diversity is correlated with higher ratings, but mandates pose short-term risk. Moody’s Investors Service URL https://www.moodys.com/research/MoodysCorporate-board-gender-diversity-associated-with-higher-credit-ratings--PBC_1193768

Rau, P. R., Sandvik, J., & Vermaelen, T. (2024). IPO price formation and board gender diversity. Journal of Corporate Finance, 88. https://doi.org/10.1016/j.jcorpfin.2024.102629

Srinidhi, Bin, Gul, Ferdinand A., Tsui, Judy, 2011. Female directors and earnings quality. Contemp. Account. Res. 28 (5), 1610–1644

Willenborg, Michael, Wu, Biyu, Yang, Yanhua Sunny, 2015. Issuer operating performance and IPO price formation. J. Account. Res. 53 (5), 1109–1149

Yaakub, N., & Sherif, M. (2019). Performance of initial public offerings (IPOs): the case of Shariah-compliant companies. Islamic Economic Studies, 27(1), 65–76. https://doi.org/10.1108/ies-06-2019-0012

Yasin, M. Y. (2025). Board gender diversity and ESG performance: the moderating role of earnings volatility in Australian publicly listed firms. Meditari Accountancy Research, 33(7), 88–117. https://doi.org/10.1108/MEDAR-10-2024-2672

Unduhan

Diterbitkan

2025-12-10

Terbitan

Vol 5 (2025): Proceedings of the 5th International Conference on Entrepreneurship (IConEnt)

Bagian

Articles

Lisensi

Creative Commons License

Artikel ini berlisensiCreative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.