Data on population of study are shown in Appendix 1.

23

CHAPTER IV FINDINGS AND DISCUSSION

4.1 Description of Sample

The population of this study is all firms making IPO in Indonesian Stock Exchange for period 2007-2010. There are 77 firms, of which 22 firms making IPO in 2007, 19 firms in 2008, 13 firms in 2009 and 23 firms making IPO in

2010. Data on population of study are shown in Appendix 1.

The sample of this study is determined using purposive sampling methods. Table 4.1 shows the process of sample selection of which the final and usable sample consists of 33 firms representing about 45 percent of population. This study is unable to obtain prospectuses of the firm as they are not available in the IDX website. Table 4.1 Sample Selection Process No. Description Number of Firms 1 The number of IPO firms in Indonesia Stock Exchange at period 2007-2010 77 2 The firms are unable for prospectus and financial report data 26 3 The firm is doing Right Issue 1 4 The firm is relisting 1 5 The firms have financial report in Dollars 6 6 The firms have incomplete stock price data 4 7 The firms are in financial sectors 6 8 Final Sample 33 After the selection of the sample, this study explores the sample by examining their distribution based on year of offerings and industry classification. Table 4.2 shows the distribution of sample firms based on year of IPO Panel A and industrial sector Panel B. Panel A shows that year 2010 is recorded as the year with the largest IPO firms but the selected IPO firms in this year is very low 17 percent, whilst year 2009 has the lowest IPO. Panel B shows that one sector, namely trade, service and investment has the largest IPO firms in which there are 17 firms making IPO during the period of analysis. One industrial sector is excluded, namely financial sector as it different characteristics in terms of assessment based on accounting numbers. Table 4.2 Distribution of Sample Firm Based on Years Sector n=33 Panel A : Based on IPO years Year Population Samples 2007 22 14 64 2008 19 12 63 2009 13 3 23 2010 23 4 17 2007-2010 77 33 43 Panel B : Based on Sector Sector Population Sample Agriculture 4 4 100 Mining 11 2 18 Basic Industry and Chemicals 8 4 50 Miscellaneous Industry 1 1 100 Consumer Goods Industry 2 1 50 Property, Real Estate and Building Construction 15 11 73 Infrastructure, Utilities Transportation 10 4 40 Finance 9 - - Trade, Services Investment 17 6 35 Total 77 33 43

4.2 Results of Data Analysis