Harlina Meidiaswati, Nunik Dwi Kusumawati, Rasyidi Faiz Akbar, Nugroho Sasikirono
This study aims to examine the impact of risk disclosure in initial public offering (IPO) prospectuses on the initial return of stocks. Unlike previous studies that used internal, external, and total disclosures (Wasiuzzaman et al., 2018) or disclosures of management issues, international trade issues, technological issues, operational issues, financial issues, market, economic, and regulatory issues(Abdou & Dicle, 2007), this study uses POJK No. 8/POJK.04/2017, which requires companies to disclose information in the prospectus during the IPO. Risk disclosure is measured by the disclosure of main risks, business risks, general risks, and risks to investors. The testing was conducted on 176 public companies listed on the Indonesia Stock Exchange (IDX) during the period 2021-2023 with 528 data. We used content analysis to test risk disclosure against the initial return of stocks. The results of the test using multiple linear regression show that the general risk consistently has a positive effect on the initial return. This condition occurs because companies that have just gone public relatively do not yet have a track record of their ability to face business risks as public companies. The main risks and business risks do not affect the initial return, which may be due to the many issuers who do not disclose the main risks and business risks. This research can be used by the government as a basis for evaluating the implementation of risk disclosure policies that positively impact investment interest, as indicated by positive initial returns. Issuers can utilize the results of this research to increase investor interest in their initial public offerings by disclosing general risks that consistently show a positive impact on initial stock returns. The research findings regarding the magnitude and type of risk disclosures by issuers can be a consideration for investors in their investment decisions on newly public companies' stocks. © 2026, SRAC-Romanian Society for Quality. All rights reserved.
Universitas Negeri Surabaya, Surabaya, Indonesia; Universitas Airlangga, Surabaya, Indonesia
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