DIVIDEND POLICY, LEVERAGE ON COMPANY VALUE AND TAX AVOIDANCE AS MODERATING VARIABLES
DOI:
https://doi.org/10.31933/dijemss.v3i4.1248Keywords:
Dividend Policy, Leverage, Tax Avoidance, Firm ValueAbstract
This study aims to determine the effect of Dividend Policy (DPR) and Leverage (DER) on Firm Value (PBV) with Tax Avoidance (ETR) as a moderating variable. Sources of data in the form of secondary data include the annual financial statements of consumer goods manufacturing companies listed on the Indonesia Stock Exchange for the 2017-2020 period. Based on a sample of 14 companies, it was found that dividend policy and tax avoidance did not affect firm value, while leverage had an effect on firm value. Tax Avoidance Ability to moderate the Dividend and Leverage Policy on Company Value has a weak influence, this is because the company complies more with tax regulations than having to deal with the tax authorities.
References
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Shams, S., Bose, S., & Gunasekarage, A. (2022). Does corporate tax avoidance promote managerial empire building? Journal of Contemporary Accounting and Economics, 18(1). https://doi.org/10.1016/j.jcae.2021.100293
Su, Z. qin, Fung, H. G., Huang, D. shi, & Shen, C. H. (2014). Cash dividends, expropriation, and political connections: Evidence from China. International Review of Economics and Finance, 29, 260–272. https://doi.org/10.1016/j.iref.2013.05.017
Sunarsih, N. M., Dewi, N. P. S., & Kireina, M. N. N. A. (2019). Analysis Of Factors Effecting The Firm Value Factors That Effect The Firm Value. International Journal of Applied Business and International Management, 4(3), 94–103. https://doi.org/10.32535/ijabim.v4i3.687
Thomsen, M., & Watrin, C. (2018). Tax avoidance over time: A comparison of European and U.S. firms. Journal of International Accounting, Auditing and Taxation, 33(November), 40–63. https://doi.org/10.1016/j.intaccaudtax.2018.11.002
Zainudin, R., Mahdzan, N. S., & Yet, C. H. (2018). Dividend policy and stock price volatility of industrial products firms in Malaysia. International Journal of Emerging Markets, 13(1), 203–217. https://doi.org/10.1108/IJoEM-09-2016-0250
Astuti, T. P., & Aryani, Y. A. (2017). Tren Penghindaran Pajak Perusahaan Manufaktur Di Indonesia Yang Terdaftar Di Bei Tahun 2001-2014. Jurnal Akuntansi, 20(3), 375–388. https://doi.org/10.24912/ja.v20i3.4
Büyükbalc?, P. ?na. (2012). Sustaining firm performance through innovation oriented value investments. Procedia - Social and Behavioral Sciences, 41, 450–455. https://doi.org/10.1016/j.sbspro.2012.04.054
Chen, X., Hu, N., Wang, X., & Tang, X. (2014). Tax avoidance and firm value: evidence from China. Nankai Business Review International, 5(1), 25–42. https://doi.org/10.1108/NBRI-10-2013-0037
Chen, Y., Hasan, I., Saffar, W., & Zolotoy, L. (2021). Executive Equity Risk-Taking Incentives and Firms’ Choice of Debt Structure. Journal of Banking and Finance, 133, 106274. https://doi.org/10.1016/j.jbankfin.2021.106274
Cladera, M. (2021). Assessing the attitudes of economics students towards econometrics. International Review of Economics Education, 37(February), 100216. https://doi.org/10.1016/j.iree.2021.100216
Cohen, G., & Yagil, J. (2009). Why do financially distressed firms pay dividends? Applied Economics Letters, 16(12), 1201–1204. https://doi.org/10.1080/17446540802389057
Drake, K. D., Hamilton, R., & Lusch, S. J. (2020). Are declining effective tax rates indicative of tax avoidance? Insight from effective tax rate reconciliations. Journal of Accounting and Economics, 70(1), 101317. https://doi.org/10.1016/j.jacceco.2020.101317
Eugster, F., & Wagner, A. F. (2020). Value reporting and firm performance. Journal of International Accounting, Auditing and Taxation, 40, 100319. https://doi.org/10.1016/j.intaccaudtax.2020.100319
Farrukh, K., Irshad, S., Shams Khakwani, M., Ishaque, S., & Ansari, N. (2017). Impact of dividend policy on shareholders wealth and firm performance in Pakistan. Cogent Business and Management, 4(1), 1–11. https://doi.org/10.1080/23311975.2017.1408208
Fosu, S., Danso, A., Ahmad, W., & Coffie, W. (2016). Information asymmetry, leverage and firm value: Do crisis and growth matter? International Review of Financial Analysis, 46, 140–150. https://doi.org/10.1016/j.irfa.2016.05.002
Hasan, M. M., Lobo, G. J., & Qiu, B. (2021). Organizational capital, corporate tax avoidance, and firm value. Journal of Corporate Finance, 70(August 2020), 102050. https://doi.org/10.1016/j.jcorpfin.2021.102050
Hsu, D. H., Hsu, P. H., & Zhao, Q. (2021). Rich on paper? Chinese firms’ academic publications, patents, and market value. Research Policy, 50(9), 104319. https://doi.org/10.1016/j.respol.2021.104319
Jiraporn, P., & Liu, Y. (2008). Capital Structure, Staggered Boards, and Firm Value. 64(1), 49–60.
Kim, J. M., Yang, I., Yang, T., & Koveos, P. (2020). The impact of R&D intensity, financial constraints, and dividend payout policy on firm value. Finance Research Letters, 101802. https://doi.org/10.1016/j.frl.2020.101802
Lambey, R. (2021). The THE EFFECT OF PROFITABILITY, FIRM SIZE, EQUITY OWNERSHIP AND FIRM AGE ON FIRM VALUE (LEVERAGE BASIS): Evidence from the Indonesian Manufacturer Companies. Archives of Business Research, 9(1), 128–139. https://doi.org/10.14738/abr.91.9649
Liang, Q., Li, Q., Lu, M., & Shan, Y. (2021). Industry and geographic peer effects on corporate tax avoidance: Evidence from China. Pacific Basin Finance Journal, 67(March), 101545. https://doi.org/10.1016/j.pacfin.2021.101545
Liu, H., Chiang, Y. M., & Tsai, H. J. (2020). The impact of loan rollover restrictions on capital structure adjustments, leverage deviations, and firm values. Pacific Basin Finance Journal, 62, 101384. https://doi.org/10.1016/j.pacfin.2020.101384
Lozano, M. B., Martínez, B., & Pindado, J. (2016). Corporate governance, ownership and firm value: Drivers of ownership as a good corporate governance mechanism. International Business Review, 25(6), 1333–1343. https://doi.org/10.1016/j.ibusrev.2016.04.005
McGuire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate social performance and firm financial performance. Academy of Management Journal, 31(4), 854–872.
Munawar, A. (2019). The Effect of Leverage, Dividend Policy, Effectiveness, Efficiency, and Firm Size on Firm Value in Plantation Companies Listed IDX. International Journal of Science and Research (IJSR), 8(10 October 2019), 9. https://doi.org/10.21275/ART20201693
Nguyen, T. G. (2020). Stock liquidity and dividend policy: Evidence from an imputation tax environment. International Review of Financial Analysis, 72(August), 101559. https://doi.org/10.1016/j.irfa.2020.101559
Nuryaman. (2015). The Influence of Intellectual Capital on The Firm’s Value with The Financial Performance as Intervening Variable. Procedia - Social and Behavioral Sciences, 211(September), 292–298. https://doi.org/10.1016/j.sbspro.2015.11.037
Seth, R., & Mahenthiran, S. (2022). Impact of dividend payouts and corporate social responsibility on firm value – Evidence from India. Journal of Business Research, 146(April), 571–581. https://doi.org/10.1016/j.jbusres.2022.03.053
Shams, S., Bose, S., & Gunasekarage, A. (2022). Does corporate tax avoidance promote managerial empire building? Journal of Contemporary Accounting and Economics, 18(1). https://doi.org/10.1016/j.jcae.2021.100293
Su, Z. qin, Fung, H. G., Huang, D. shi, & Shen, C. H. (2014). Cash dividends, expropriation, and political connections: Evidence from China. International Review of Economics and Finance, 29, 260–272. https://doi.org/10.1016/j.iref.2013.05.017
Sunarsih, N. M., Dewi, N. P. S., & Kireina, M. N. N. A. (2019). Analysis Of Factors Effecting The Firm Value Factors That Effect The Firm Value. International Journal of Applied Business and International Management, 4(3), 94–103. https://doi.org/10.32535/ijabim.v4i3.687
Thomsen, M., & Watrin, C. (2018). Tax avoidance over time: A comparison of European and U.S. firms. Journal of International Accounting, Auditing and Taxation, 33(November), 40–63. https://doi.org/10.1016/j.intaccaudtax.2018.11.002
Zainudin, R., Mahdzan, N. S., & Yet, C. H. (2018). Dividend policy and stock price volatility of industrial products firms in Malaysia. International Journal of Emerging Markets, 13(1), 203–217. https://doi.org/10.1108/IJoEM-09-2016-0250
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Published
2022-05-24
How to Cite
Pujiastuti, H., Farid Subkhan, & Irene Zepania. (2022). DIVIDEND POLICY, LEVERAGE ON COMPANY VALUE AND TAX AVOIDANCE AS MODERATING VARIABLES. Dinasti International Journal of Education Management And Social Science, 3(4), 597–607. https://doi.org/10.31933/dijemss.v3i4.1248
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