Skip to main content
SpringerLink
Log in

Conceptual Paper Tax Avoidance and Firm Value in Manufacturing Companies: A Case Study for Companies in Indonesia

  • Conference paper
  • First Online:
Complex, Intelligent and Software Intensive Systems (CISIS 2022)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 497))

  • 486 Accesses

Abstract

This study aims to offer a conceptual framework for the effect of capital structure, dividend policy, profitability, and tax avoidance on the firm value of manufacturing companies in Indonesia. The signaling theory explains how a company should give signals to the financial statement users, including giving signals to the investor about how the company has future prospects. Several factors that affect firm value proposed in this conceptual paper are capital structure, dividend policy, profitability, and tax avoidance.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 259.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 329.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. Sari, I.A.G.D.M.: Profitability and liquidity on firm value and capital structure as intervening variable. Int. Res. J. Manag. IT Soc. Sci. 7(1), 116–127 (2020). https://doi.org/10.21744/irjmis.v7n1.828

    Article  Google Scholar 

  2. Lee, J.Y.: The effect of tax avoidance on firm risk. Korean Corp. Manag. Rev. 26(2), 55–78 (2019). https://doi.org/10.21052/kcmr.2019.26.2.03

    Article  Google Scholar 

  3. Dawar, V.: Agency theory, capital structure and firm performance: some Indian evidence. Manag. Financ. 40(12), 1190–1206 (2014). https://doi.org/10.1108/MF-10-2013-0275

    Article  Google Scholar 

  4. Sukmawardini, D., Ardiansari, A.: The influence of institutional ownership, profitability, liquidity, dividend policy, debt policy on firm value. Manag. Anal. J. 7(2), 211–222 (2018). https://journal.unnes.ac.id/sju/index.php/maj/article/view/24878

  5. Sitompul, R.M.A., Bukit, R., Erwin, K.: The effect of liquidity, solvability, profitability, and non performing financing on firm value with intellectual capital as moderating variables in multifinance companies listed on Indonesia stock exchange in 2015–2018. J. Publ. Budget. Account. Financ. 3(1), 1689–1699 (2020)

    Google Scholar 

  6. Muhtadi, A.: Capital structure, profitability and firm’s value: evidence from Jordan. Res. J. Financ. Account. (October) (2019). https://doi.org/10.7176/rjfa/10-20-07

  7. Surwanti, A., Pamungkas, W.S.: Dividend policy, firms’ characteristics and the impact on the Southeast Asian firms’ value. In: Proceedings of 4th International Conference on Sustainability and Innovation 2020–Accounting Management (ICoSIAMS 2020). ICoSIAMS 2020, vol. 176, pp. 150–156 (2021). https://doi.org/10.2991/aer.k.210121.021

  8. Yee, C.S., Sapiei, N.S., Abdullah, M.: Tax avoidance, corporate governance and firm value in the digital era. J. Account. Invest. 19(2) (2018). https://doi.org/10.18196/jai.190299

  9. Riduwan, A.: Financial performance and value of SOEs: seen from good corporate governance, intellectual capital, and corporate social responsibility. Int. J. Econ. Manag. Stud. 7(1), 9–17 (2020). https://doi.org/10.14445/23939125/ijems-v7i1p102

    Article  Google Scholar 

  10. Mubyarto, N.: The influence of profitability on firm value with capital structure as the mediator. J. Econ. 16(2), 184–199 (2020). https://doi.org/10.21831/economia.v16i2.30405

    Article  MathSciNet  Google Scholar 

  11. Putri, V.R.: The effect of profitability, dividend policy, debt policy, and firm age on firm value in the non-bank financial industry. J. Ilmu Manaj. Ekon. 10(1), 14–21 (2017)

    Google Scholar 

  12. Fauziah, F., Rafiqoh, R.: Effect of profitability, company size, capital structure, and liquidity risk on firm value of Indonesian banks. Organum J. Saintifik Manaj. dan Akunt. 4(1), 14–27 (2021). https://doi.org/10.35138/organum.v4i1.110

    Article  Google Scholar 

  13. Fajaria, A.Z.: The effect of profitability, liquidity, leverage and firm growth of firm value with its dividend policy as a moderating variable. Int. J. Manag. Stud. Res. 6(10), 55–69 (2018). https://doi.org/10.20431/2349-0349.0610005

    Article  Google Scholar 

  14. Hasan, M.M., Lobo, G.J., Qiu, B.: Organizational capital, corporate tax avoidance, and firm value. J. Corp. Financ. 70(June), 102050 (2021). https://doi.org/10.1016/j.jcorpfin.2021.102050

  15. Komara, A., Ghozali, I., Januarti, I.: Examining the Firm Value Based on Signalling Theory. ICAMER 2019, vol. 123, pp. 1–4 (2020). https://doi.org/10.2991/aebmr.k.200305.001

  16. Widiatmoko, J., Badjuri, A., Irsad, M., Adhipratama, A.A.: Ownership structure on dividend policy and its impact on firm value. In: Proceedings of 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020), vol. 169, pp. 0–3 (2021). https://doi.org/10.2991/aebmr.k.210311.081

  17. Hirdinis, M.: Capital structure and firm size on firm value moderated by profitability. Int. J. Econ. Bus. Adm. 7(1), 174–191 (2019). https://doi.org/10.35808/ijeba/204

    Article  Google Scholar 

  18. Rahim, A., Khan, M.M., Iftikhar, W., Ashraf, S., Mehmood, S.: an Implication of signaling theory to examine impacts of financial leverage on firm performance: a study of Islamic Banks in Asian region. Psychol. Educ. 58(2), 6700–6721 (2021)

    Google Scholar 

  19. Kumar, J.K.: Agency theory and firm value in India. SSRN Electron. J. (2011). https://doi.org/10.2139/ssrn.501802

    Article  Google Scholar 

  20. Soewarno, N., Ramadhan, A.H.A.: The effect of ownership structure and intellectual capital on firm value with firm performance as an intervening variable. Int. J. Innov. Creat. Chang. 10(12), 215–236 (2020)

    Google Scholar 

  21. Sondakh, R.: The effect of dividend policy, liquidity, profitability and firm size on firm value in financial service sector industries listed in Indonesia stock exchange 2015–2018 period. Accountability 8(2), 91 (2019). https://doi.org/10.32400/ja.24760.8.2.2019.91-101

    Article  Google Scholar 

  22. Panganiban, G.L., Madrigal, D.V.: A new decade for social changes. Technol. Soc. Sci. J. 7, 312–320 (2020). https://techniumscience.com/index.php/socialsciences/article/view/332/124

  23. Ugwu, C.C., Onyeka, V.N., Okwa, I.E.: Dividend policy and corporate financial performance: evidence from selected listed consumer goods firms in Nigeria. J. Econ. Bus. 3(3) (2020). https://doi.org/10.31014/aior.1992.03.03.262

  24. Cao, Y.: Internal factors of dividend policy at the firm level: a case study of Lenovo annual report. In: Proceedings of 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021), vol. 178, pp. 363–368 (2021). https://doi.org/10.2991/aebmr.k.210601.064

  25. Agung, G., Hasnawati, S., Huzaimah, R.A.F.: The effect of investment decision, financing decision, dividend policy on firm value. J. Bisnis dan Manaj. 17(1), 1–12 (2021). https://doi.org/10.23960/jbm.v17i1.189

    Article  Google Scholar 

  26. Baker, H.K., Kapoor, S.: Dividend policy in India: new survey evidence. Manag. Financ. 41(2), 182–204 (2015). https://doi.org/10.1108/MF-01-2014-0024

    Article  Google Scholar 

  27. Sugiyono, D.: Metode Penelitian Pendidikan Pendekatan Kuantitatif, dan R&D. Alfabeta, Bandung (2019)

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Accounting, Universitas Islam Sultan Agung, Jalan Raya Kaligawe KM 4, Semarang, Indonesia

    Chrisna Suhendi, Luluk Muhimatul Ifada &  Winarsih

Authors
  1. Chrisna Suhendi
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Luluk Muhimatul Ifada
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Winarsih
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Luluk Muhimatul Ifada .

Editor information

Editors and Affiliations

  1. Department of Information and Communication Engineering, Fukuoka Institute of Technology, Fukuoka, Japan

    Leonard Barolli

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Suhendi, C., Ifada, L.M., Winarsih (2022). Conceptual Paper Tax Avoidance and Firm Value in Manufacturing Companies: A Case Study for Companies in Indonesia. In: Barolli, L. (eds) Complex, Intelligent and Software Intensive Systems. CISIS 2022. Lecture Notes in Networks and Systems, vol 497. Springer, Cham. https://doi.org/10.1007/978-3-031-08812-4_27

Download citation

Publish with us

Policies and ethics

Search

Navigation