FACTORS AFFECTING THE COMPANY’S VALUE WITH TAX AVOIDANCE AS INTERVENING VARIABLE

Abstract

Increased profits will increase taxes paid but a decrease in profits will also reduce the value of the company, this is what underlies this research. This study aims to analyze the influencing factors, namely Profitability, Leverage and Firm Size on Company Value with tax avoidance as an Intervening variable. The sampling method for this study was purposive sampling method with a sample of 29 consumer goods industry companies for the 2018-2021 period. The consumer goods industry is the industry that has survived the most and experienced the lowest share price decline correction during the covid pandemic. The research method used is the structural equation model partial least square approach using path analysis techniques. This research is expected to provide understanding to readers and other researchers regarding the factors that influence company value and tax avoidance. The research is also expected to help investors and management of consumer goods industry companies to make decisions regarding the sustainability of tax avoidance and company value. The results showed that profitability and leverage affect tax avoidance, firm size has no effect on tax avoidance, profitability and leverage affect company value, firm size has no effect on company value. The results of path analysis show that tax avoidance is not able to mediate the effect of profitability, leverage, firm size, on company value.

Keywords

• managerial ownership
• company size
• capital structure
• company value
• profitability