Peran Penghindaran Pajak dalam Hubungan Karakteristik Perusahaan dan Nilai Perusahaan

Abstract

This study examines the effect of, leverage, profitability, and firm size on firm value. In addition, this study employs tax avoidance as a moderator. The research data consists of financial statements and share prices of energy sub-sector companies listed on the Indonesia Stock Exchange from 2016 to 2020. Data were obtained from www.idnfinancials.com, the company's official website, and www.finance.yahoo.com. Based on purposive sampling, the total sample used is 70 observations. Hypothesis testing is done by using multiple linear regression analysis for panel data. The test results show that profitability and firm size do not affect firm value, while leverage positively affects firm value. In addition, the interaction between tax avoidance and profitability affects firm value. Tax avoidance can also provide a moderating effect in the relationship between leverage and firm value, firm size and firm value.

The Effect of Tax Avoidance, Profitability, and Firm Size on Firm Value (Case Study of Pharmaceutical Companies listed on the IDX 2018-2022)

“…The net profit generated by the company in a certain period of time is used to determine its profitability (Brigham & Houston, 2019). A high level of profitability makes it possible to pay larger dividends to shareholders (Firmansyah, Nauval Muhammad, et al, 2021). The ratio used to evaluate the company's capacity to earn profit is the profitability ratio.…”

“…Although tax avoidance does not violate legal restrictions, investors see this practice as potentially harmful to the long-term success of the company. Investors believe that there is still a possibility of tax problems in the future (Firmansyah, Nauval Muhammad, et al, 2021). Companies that engage in tax avoidance may experience an increase in firm value (Firmansyah & Widodo, 2021) dan (Hapsari et al, 2023).…”

“…If managers behave in the best interests of the business and shareholders, firm value will increase. To improve business performance, including market performance, managers must make choices that can optimize assets and resources effectively and efficiently (Firmansyah, Nauval Muhammad, et al, 2021).…”

“…Previous research has looked at a number of variables that affect firm value, including the relationship between company characteristics (Firmansyah, Nauval Muhammad, et al, 2021), the effect of earnings management (Nurhanimah et al, 2019), Sales Growth (Theresia & Hariyanti, 2023) and (Aisyah Margie & Melinda, 2024), tax avoidance (Andri Wijaya et al, 2020;Firmansyah, Nauval Muhammad, et al, 2021;Firmansyah & Ardiansyah, 2020), firm size (Hakim & Aris, 2023;Natalie & Lisiantara, 2022), application of green accounting (Aisyah Margie & Melinda, 2024;Kumala & Priantilianingtiasari, 2024;Salsabila & Widiatmoko, 2022), environmental performance (Goldie Kelly & Deliza Henny, 2023), profitability (Andri Wijaya et al, 2020;Ritonga & Zurriah, 2023), environmental performance (Goldie Kelly & Deliza Henny, 2023), and profitability (Andri Wijaya et al, 2020;Ritonga & Zurriah, 2023), leverage (Eric & Huda, 2022;Jufrizen & Fatin, 2020;Sunreni et al, 2023), the effect of marketing activities (Muhammad Hidayat, 2022), company liquidity (Gultom et al, 2013), Capital Structure (Susilowati et al, 2019), CEO share ownership (Yosepha Tarigan et al, 2022), CSR variables (Kumala & Priantilianingtiasari, 2024).…”

“…Managers use tax avoidance as a tax planning approach to promote shareholder interests in increasing shareholder wealth. Tax avoidance is an example of manager behavior that is in line with the interests of shareholders and shows that managers intend to maximize profits (Firmansyah, Nauval Muhammad, et al, 2021). In addition, managers take tax avoidance actions as an effort to create fresh resources by reducing corporate tax liabilities while still complying with applicable laws.…”