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Research Paper | Finance | Indonesia | Volume 9 Issue 2, February 2020

Tax Avoidance: Determinant Factors and Impact on Firm Value

Maulida Aulia Rezki | Noer Azam Achsani ^[8] | Hendro Sasongko ^[9]

Abstract: 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 impact to state-owned companies value while private companies insignificantly.

Keywords: effective tax rate, firm value, index LQ45, tax avoidance

Edition: Volume 9 Issue 2, February 2020,

Pages: 11 - 17

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