The Influence of Good Corporate Governance Mechanism to Underpricing : Empirical Study of Company's IPO in Indonesian Stock Exchange

This study aims to examine the effect of Good Corporate Governance mechanisms to underpricing phenomena at companies registered in Indonesia stock exchange and performs Initial Public Offering, and underpricing during 2010-2014. This research is based on signal theory (signaling theory) which states that good GCG mechanism will give good signal of company quality so that it will be reflected stock price at IPO will be high, so it will avoid underpricing. The results provide empirical evidence that it is only the number of the Board of Commissioners that affect the occurrence of underpricing