Stock Underpricing Phenomenon and Influencing Factors

The excessive discrepancy between the main market's both the secondary market's share price and share price is known as underpricing. This research seeks to ascertain how debt affects covenant, business size, and industry type on the undervaluation of stocks of businesses that are listed on the Indonesia Stock Exchange. The author employs a quantitative research approach and an associative technique. The data was collected using the documentation approach. The study object consists of companies that list from 2019 to 2022 on the Indonesian Stock Exchange. The sample strategy employed was non-probability purposive sampling. In all, 190 companies met the sample's standards. According to the investigation's findings, the kind of industry has a positive impact on stock underpricing. However, for businesses that conduct IPOs on the Indonesian Stock Exchange, it seems that stock underpricing is unaffected by the company's size or debt-to-equity ratio. This finding emphasizes the importance of considering investment decision-making strategies based on a deep understanding of industry factors rather than relying solely on firm size or financial structure.