This research is conducted to examine the determinants of long term underperformance. There are two main variables used in this research; accounting variables (return on equity and price earning ratio), and non-accounting variables (underwriter reputation, company age and positive initial return).
The objects of this research are stocks that had executed IPO and listed on IDX from December 2002-December 2012. There are 139 company samples, and then carefully selected to 66 companies to be generated further.
The result of this research is that four variables, return on equity, price earning ratio, underwriter reputation and company age) do not have significant impact towards long-term underperformance, and one variable (positive initial return) have significant impact towards long term underperformance.


Supervisor: Roy Sembel