UNDERPRICING: MACROECONOMIC VARIABLES

This paper has objective to explore macroeconomic Variables to affect initial return (underpricing) for period 2000 to 2018. Underpricing is calculated by closing price on the first day of trading in stock market compared to price of Initial Public Offering (IPO), sometimes its called Initial Return. Vector Autoregressive is used to get variable that affected underpricing. The result shows that variable of Initial Return Lag one and two, Inflation and variables of Oil prices significantly affected Underpricing in Indonesia market.