Analysis of Tax Avoidance Effect on Firm Value (A Study on Firms Listed on Indonesia Stock Exchange) (original) (raw)
Related papers
Firm Value is one of the investor's perceptions of company success level that is reflected on stock prices. High stock prices make the value of companies higher. Several factors can affect firm value, including firm size, profitability, and tax avoidance. The sample used in this study is miscellaneous industry sector companies listed on the Indonesia Stock Exchange in the period of 2015-2019. This study used the Partial Least Square (PLS) method. The analysis technique used in this study is the inner model analysis and hypothesis testing. The result of this study showed that firm size and tax avoidance do not affect firm value, and profitability has a positive and significant effect on firm value while firm size does not affect tax avoidance and profitability has a negative and significant effect on tax avoidance. However, tax avoidance is unable to mediate the effect of firm size and profitability on firm value. The coefficient determination test results indicate that the firm value variable can be explained by the variation of variable firm size, profitability, and tax avoidance is 44,7%, and the remaining 55,3% is explained by other independent and intervening variables which are not examined in this study. While tax avoidance variable can be explained by the variation of variable firm size, profitability, and firm value is 20% and remaining 80% is explained by other independent and dependent variables which are not examined in this study.
How Does Tax Avoidance Affect Firm Value? (Lessons from Soe and Indonesian Private Companies)
Indonesian Journal of Business and Entrepreneurship
Taxes are the main source of state revenue and become an important factor for the running of government and development of the country with the largest contribution coming from corporate income tax. Different objectives of business ownership result in different tax management. This study analyzes the characteristics of tax avoidance, determinants and influences on firm value in state-owned and private companies. This study uses secondary data sources in the form of quarterly company financial statements, company stock price reports, and other related data. Descriptive and panel data analysis were used to examine the sample in this study which includes non-financial companies that are continuously profitable and listed in the LQ45 index for the period February 2014 to July 2019. The results of the study explain that private companies are more dominant in tax avoidance conduct compared to State-Owned Enterprises (SOEs). The determinants that influence the tax avoidance of SOEs are ROA and firm size, whereas in private companies there are no determinants that have a significant effect. There is significant negative impact in State-owned companies from tax avoidance on the firm value, while private company does not have a significant effect.
PROCEEDINGS INTERNATIONAL SEMINAR ON ACCOUNTING SOCIETY, 2020
The purpose of this research is to determine the effect of tax avoidance, capital structure and company size on the value of the company in financial sector companies listed on the Indonesia Stock Exchange in the period 2011-2015. The population in this study are financial sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2011-2015. The number of manufacturing companies that were sampled in this study were 16 companies with observations over 5 years. Based on the purposive sampling method, the total research sample is 80 financial statements. Hypothesis testing in this study uses multiple regression analysis with the application of the SPSS 22 program. The results of this study indicate that tax avoidance and capital structure do not significantly influence the value of the company, but the size of the company has a significant effect on the value of the company.
Tax Avoidance: Determinant Factors and Impact on Firm Value
2020
Introduction: Tax management aims to organize the company for tax avoidance while maintaining the firm value. Background Problems: Different points of interests between taxpayers and government lead realization of tax revenue target could not achieved. Purpose: This research aims to analyze characteristics of companies’ tax avoidance that listed on the Indonesia Stock Exchange and determinants of tax avoidance and the impact toward firm value. Research Methods: Descriptive and panel data analysis were used to examine sample in this study which covered non-financial companies that constantly profitable and registered in LQ45 index for February 2014 to July 2019 periods. Findings & Conclusions: The results revealed companies on the average have made tax payments in accordance with applicable regulations. Profitability and firm size positively affected tax avoidance whereas tax avoidance insignificantly affect to overall firm value. However, tax avoidance indicated significant negative...
Jurnal Dinamika Akuntansi, 2019
This study aims to examine the influence of tax amnesty on tax avoidance and it’s consequency on firm value and tax avoidance as intervening variable. Variables examined in this research consisted of tax amnesty measured with dummy variable, tax avoidance which measured with s hot-run tax avoidance (CETR), and firm value measured using Tobins’ Q. The sample which is used in this research was extracted with using proportional sampling. After reduces with several criteria, 287 firms are determined as samples. The results showed that tax amnesty effect on tax avoidance, tax avoidance effect on tax amnesty, tax amnesty effect on firm value, and tax avoidance is not as intervening variable.
This research aims to examine the potential factors which are considered to influence tax avoidance. Some predictor variables used in this research include profitability, leverage, sales growth and executive character. The population of this research were companies in the LQ45 category listed on the Indonesia Stock Exchange during the period of 2016-2019, and the sampling method used was the purposive sampling method. The research method used is quantitative method. This research uses data in the form of financial statements of LQ45 companies listed on the Indonesia Stock Exchange during the period of 2016-2019. Data was analyzed using panel data regression analysis. Based on the results of panel data regression analysis with a significance level of 5% using the EViews9 software, it can be concluded that partially, profitability has an effect on tax avoidance, while leverage, sales growth and executive character partially have no effect on tax avoidance. Simultaneously, profitability, leverage, sales growth and executive character have no effect on tax avoidance.
Jurnal Riset Akuntansi Terpadu, 2022
This study examines the effect of tax avoidance and tax aggressiveness on firm value. Besides, this study also analyzes the moderating role of tax risk and corporate governance in this relationship. This study employs secondary data from financial reports and stock price information at www.idnfinancials.com and www.yahoo.finance.com. The sample utilized in this study is Indonesian manufacturing companies from 2016 to 2019. Using purposive sampling, the sample obtained in the study is 260 observations. Data were analyzed employing multiple linear regression for panel data. This study suggests that tax avoidance is positively associated with firm value, while tax aggressiveness is negatively associated. Also, tax risk and corporate governance can reduce the positive effect of tax avoidance on firm value. Furthermore, tax risk and corporate governance can reduce the negative impact of tax aggressiveness on firm value. This study indicates that investors need to pay attention to companies' information to the public. Besides, the Financial Services Authority needs to improve governance policies for companies listed on the Exchange to support Indonesia's investors' protection.
Jurnal Administrasi Publik : Public Administration Journal
Stock Exchange This study aims to determine whether company size, profitability, leverage, the proportion of independent commissioners and government ownership have an influence on the company's effective tax rates both jointly and partially. This was tested on companies listed on the Indonesia Stock Exchange by means of statistical testing through a panel data regression model that was processed using the STATA 12.0 application. Secondary data used in this research were collected using content analysis techniques. The research sample was determined by a purposive sampling technique on companies in the sectoral index consisting of 10 sectors listed on the Indonesia Stock Exchange with the study period 2009-2018. The independent variables used in this study are company size, profitability, leverage, the proportion of independent commissioners and government ownership, while the dependent variable is the company's effective tax rate. The results showed that the size of the com...
Tax Avoidance and Firm Value: A Two-Stage Regression Analysis
IAR Consortium, 2021
Enterprises engaged in tax avoidance activities, the purpose of which is either paying less tax or deferring tax payment. Therefore, the purpose of this study is to investigate the relationship between tax avoidance and firm value. This study used public listed companies on the T aiwan Stock Exchange over the period 2010-2017, based on empirical regression analysis to study the effects of tax avoidance behavior on firm value, and measured with effective tax rates as tax avoidance measures. T he empirical results show that corporate tax avoidance will be reflected in the reduction of the effective tax rates (ET R) and the expanding of the book-tax differences (ET R), which will have a significant negative impact on the value of the enterprise, that is, the reduct ion of the effective tax rate enables the enterprise to pay less tax and raise the firm value. Moreover, when the financial income of enterprises is greater than the income from taxation, the higher the degree of corporate tax avoidance, the higher the ent erprise value.
Jurnal Ekonomi Bisnis dan Kewirausahaan, 2020
This study aims to determine the effect of liquidity, profitability, and solvability on the level of tax aggressiveness with firm value as a control variable. Total sample was 86 non-financial company that implicate tax aggressiveness in Indonesia Stock Exchange (IDX), with purposive sampling, with cross section data period 2007 to 2017. This study using agency theory and signaling theory as the grand theory. The data were analyzed using Structural Equation Modeling- Partial Least Square (SEM-PLS). This study uses a SmartPLS 3.0 and must pass outer and inner criteria. The reason why the author choose SmartPLS is because this application program can explain each indicator of the variable, so will be easy to evaluate which indicator that not have the correspondent affect with the dependend variable. The previous studies of ETR showed inconsistent results in various countries. Test results show that liquidity and profitability have a negative and significant influenced with tax aggress...