THE EFFECT OF PROFITABILITY, FIRM SIZE, CAPITAL STRUCTURE AND TAX AVOIDANCE ON FIRM VALUE

Abstract

The aim of this research is to analyze and determine the effect profitability, firm size, capital structure and tax avoidance on firm value. The population in this study is the infrastructure sector companies listed on the Indonesia Stock Exchange in 2016-2019 as many as 57 companies. Determination of the sample carried out in this study by using purposive sampling technique. Data were analyzed using multiple linear regression analysis techniques. The results showed that profitability, firm size, capital structure and tax avoidance has a positive and significant effect on firm value in infrastructure sector companies listed on the Indonesia Stock Exchange from 2016-2019. The theoretical implications that can be given from the findings of this study are the higher the profitability, firm size, capital structure and tax avoidance of a company, the firm value will increase and the practical implications are helping company management in increasing firm value and helping investors in determining the right investment decisions, so that it can assess the company has good prospects in the future.

Keywords

• profitability
• firm size
• capital structure
• tax avoidance
• firm value