Factors Determining the Decision to IPO MSMEs on the Acceleration Board of the Indonesia Stock Exchange Reviewed from Internal and External Factors

Irfan Noor Riza; Sri Handayani; Zaki Sierrad

doi:10.55927/fjmr.v4i8.446

Authors

Irfan Noor Riza Universitas Teknologi Yogyakarta
Sri Handayani Universitas Teknologi Yogyakarta
Zaki Sierrad Universitas Widya Mataram Yogyakarta

DOI:

https://doi.org/10.55927/fjmr.v4i8.446

Keywords:

Initial Public Offering, MSMES, Internal Factors, External Factors, Acceleration Board

Abstract

This study aims to examine the determining factors of Initial Public Offering (IPO) decisions among Micro, Small, and Medium Enterprises (MSMEs) listed on the Acceleration Board of the Indonesia Stock Exchange (IDX). Specifically, it investigates the role of internal factors (financial performance, ownership structure, corporate governance readiness) and external factors (macroeconomic indicators and government policies) in influencing MSMEs' decisions to go public. A mixed-methods research design was employed, combining quantitative analysis using multiple linear regression and qualitative insights from semi-structured interviews. The population comprised 42 MSMEs that conducted IPOs on the Acceleration or Development Boards between 2018 and 2024. Data were collected through questionnaires, company financial reports, IPO prospectuses, and macroeconomic databases. The results reveal that internal factors such as Return on Assets (ROA), firm size, and governance readiness significantly influence IPO decisions. External factors including inflation, interest rates, exchange rates, and stock index performance also play a moderating role. Additionally, qualitative findings emphasize the importance of strategic mentoring programs like IDX Incubator in enhancing IPO readiness.

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