89
NWTL not significant which means not appropriate with research hypothesis.
From that regression equation CCFL, NWTLFA, GPS, NITL, NINW, and NWTL have unidirectional with initial stock price. Means if these
financial ratios getting higher, so does the initial stock price While NIS, OITL, and NWS have inverted relationship with initial stock price. Means
if these financial ratios getting higher, initial stock price would be getting lower.
3. R Square Test
Result of autocorrelation among variables calculation from banking sector sample is shown below:
Table 4.14 Model Summary
Model Summary
Multiple R R Square
Adjusted R Square
.609
a
.371 .182
Dependent Variable: IPO Predictors: CCFL NWTLFA GPS NIS OITL
NWS NITL NINW NWTL
From the calculation of coefficient correlation get a result 0.834. this things means as a whole financial ratios have unidirectional relation
because the coefficient correlation is approaching to 1. This result is
90
supported by calculation of determinant coefficient r2 is about 0.182. it means financial ratios influenced initial price offering about 18,2, and the
rest 81,8 influenced by other factor that not analyzed by this research.
B. Interpretation
The result of this research shows several indications, which the writer intends to discuss the result one by one.
The research result shows that Net Worth Total Liabilities to Fixed Asset significant influence to initial public offering. A measure of long term
solvency NWTLFA has a positive parameter. It can be said that it’s holding fixed asset constant which may increase future earnings. Another explanation
that more capital invested in other than fixed assets should increase future earnings. The category with the largest number of ratios that are associated
with future earnings changes is profitability. These result are consistent previous studies: first, Ou and Penman 1989 noted that previous years
profitability ratios are a good proxy for future profit. They also found that six out of eighteen ratios included in their prediction study were in the
profitability category, second he founds that o’Connor 1973 found that five out of ten ratios with strength of association in this association study were in
the profitability category.
