THE EFFECT OF TAX AVOIDANCE AND DIVIDEND POLICY ON FIRM VALUE WITH MANAGERIAL OWNERSHIP AS A MODERATING VARIABLE

Abstract

The assessment of firm value is crucial because it reflects the company's performance, which can affect investor perceptions. Along with development, firm value can be influenced by applying financial management functions, such as tax avoidance and dividend policy. This study aims to obtain empirical evidence regarding the impact of tax avoidance and dividend policy on firm value, with managerial ownership as a moderating variable. This study uses a quantitative approach, with a population of companies listed on the Indonesia Stock Exchange during 2019-2022. Sampling was carried out using the purposive sampling method, so that 32 companies per year were obtained during 2019-2022, resulting in a total of 128 data. Statistical tests were carried out using moderated regression analysis. The research findings show that tax avoidance has a negative impact on firm value, while dividend policy has a positive impact on firm value. However, the managerial ownership variable has no significant effect in strengthening or weakening the relationship between tax avoidance and dividend policy on firm value.

Keywords

• tax avoidance
• dividend policy
• firm value
• managerial ownership.