The effect of tax avoidance, sustainbility report, corporate governance on firm value: Leverage as moderating (Empirical Study On Registered Manufacturing Companies On the Indonesia Stock Exchange 2014-2019)

Abstract

Disclosure about the factors that influence firm value is the aim of this study. Tax avoidance variables, sustainability reports, corporate governance practices and leverage are thought to influence firm value. Samples were selected based on certain criteria. Therefore, data obtained from the Indonesia Stock Exchange as many as forty companies for six years (2014 to 2019). The results reveal that tax avoidance, sustainability reporting, corporate governance practices affects firm value in a negative direction. Meanwhile, leverage affects firm value in a positive direction. The effect of the sustainability report on firm value is proven not to be strengthened by the leverage variable as a moderating variable, but it does strengthen the effect of tax avoidance and corporate governance on firm value.. Originality / Value - This paper contributes to three different series of studies: the literature on government as a determinant of tax avoidance in Indonesia. For companies, evaluate, improve, improve performance. For investors, to assist in making wise judgments about the value of the firm, it is worth considering other factors and for the academy as the theoretical library used. For further research with institutional ownership variable, financial crisis as a moderating variable.

The Role of Ownership Structure in Moderating The Relationship Between Tax Avoidance, Corporate Social Responsibility Disclosure, and Firm Value

“…Tax avoidance has a positive and significant effect on firm value, so the first hypothesis (H 1 ) proposed in this study is statistically rejected. The results of this study are in line with the results of Nugroho & Agustia (2017), Apsari & Setiawan's (2018), Andayani & Yanti (2021), and Oanh & Gan (2022)'s research, which states that tax avoidance affect significantly to firm value. Agency theory explains that the contract that occurs between the owner of the company (principal) and the manager (agent) aims to decide to run the company (Jensen & Meckling, 1976).…”

“…The results of Nugroho & Agustia's research (2017) show that institutional ownership doesn't influence the firm value, while tax avoidance have significant effect to firm value. The research results from Apsari & Setiawan (2018), Andayani &Yanti (2021), andOanh &Gan (2022) state that tax avoidance positively impacts firm value. In contrast to Inanda, et al (2018) and Wardani, et al (2022), which state that tax avoidance by companies does not affect firm value.…”

Assessing the Linkage Between Sustainability Reporting and Indonesia’s Firm Value: The Role of Firm Size and Leverage

“…This suggests that sustainability reporting does not play a mediating role in impacting the relationship between leverage and firm value. By employing a more comprehensive data observation, this discovery also offers a similar empirical perspective as previous studies [54,55], and can contribute more robust evidence to the literature.…”

The Relationship between Sustainability Reporting, E-Commerce, Firm Performance and Tax Avoidance with Organizational Culture as Moderating Variable in Small and Medium Enterprises in Palembang

“…To study the effect of tax avoidance on firm performance, Andayani [61] used a sample of 40 companies listed on the Indonesia Stock Exchange during the period of 2014 to 2019. Khuong [31] used a sample of Vietnamese firms listed from 2010 to 2016.…”