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The Effect Of Tax Avoidance And Dividend Policy On Firm Value With Managerial Ownership As A Moderating Variable

Author

Listed:
  • Mega METALIA

    (Department of Accounting, University of Lampung, Bandar Lampung, Indonesia)

  • Dita Puspita Sari RAMDIAH

    (Department of Accounting, University of Lampung, Bandar Lampung, Indonesia)

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.

Suggested Citation

  • Mega METALIA & Dita Puspita Sari RAMDIAH, 2024. "The Effect Of Tax Avoidance And Dividend Policy On Firm Value With Managerial Ownership As A Moderating Variable," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 23(1), pages 23-32.
    • Handle: RePEc:pts:journl:y:2024:i:1:p:23-32
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    References listed on IDEAS

    as
    1. Seth, Rama & Mahenthiran, Sakthi, 2022. "Impact of dividend payouts and corporate social responsibility on firm value – Evidence from India," Journal of Business Research, Elsevier, vol. 146(C), pages 571-581.
    2. Ali, Heba, 2022. "Corporate dividend policy in the time of COVID-19: Evidence from the G-12 countries," Finance Research Letters, Elsevier, vol. 46(PB).
    3. Fama, Eugene F, 1978. "The Effects of a Firm's Investment and Financing Decisions on the Welfare of Its Security Holders," American Economic Review, American Economic Association, vol. 68(3), pages 272-284, June.
    4. Xudong Chen & Na Hu & Xue Wang & Xiaofei Tang, 2014. "Tax avoidance and firm value: evidence from China," Nankai Business Review International, Emerald Group Publishing Limited, vol. 5(1), pages 25-42, February.
    5. Armstrong, Christopher S. & Blouin, Jennifer L. & Jagolinzer, Alan D. & Larcker, David F., 2015. "Corporate Governance, Incentives, and Tax Avoidance," Research Papers 2134, Stanford University, Graduate School of Business.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Tax avoidance; Dividend Policy; Firm Value; Managerial Ownership.;
    All these keywords.

    JEL classification:

    • A - General Economics and Teaching
    • B - Schools of Economic Thought and Methodology
    • C - Mathematical and Quantitative Methods
    • G - Financial Economics
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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