KINERJA JANGKA PANJANG PADA IPO (INITIAL PUBLIC OFFERING) DI INDONESIA PERIODE 1991-1993

The aim of this research is to compare the performance for three years after going
public of 27 manufacture companies in Indonesia stock market from 1991-1993 with
the benchmark. Benchmarks are : 1) return market and 2) return of same size firm.
Using Cumulative Average Benchmark Adjusted Return (CAbAR) as a method to
compare the long term return, the sample display some evidences of significant
underperformance compare to market and to same size firm. This result consistent with
other research in many countries such us Jan Bo Jakobsen in Denmark, and Aggarwal
in Brazil, Meksiko and Chili. It means that as any investor in any country, investors in
Indonesia stock market are over reaction and over optimism to the firm of going public
as Loughran and Ritter in Jan Bo Jakobsen indicates.
Keywords : long term return, benchmark