Corporate Size, Leverage, and Tax Avoidance: Their Roles in Shaping Firm Value in Indonesia’s Manufacturing Sector"

Salisa Isyarifah; Katiya Nahda

Salisa Isyarifah Management Study Program, Faculty of Business and Economics, Indonesian Islamic University, Special Region of Yogyakarta
Katiya Nahda Management Study Program, Faculty of Business and Economics, Indonesian Islamic University, Special Region of Yogyakarta

Keywords: Tax Avoidance, Firm Size, Leverage, Firm Value

Abstract

This research aims to investigate the impact of tax avoidance, firm size, and leverage on the value of manufacturing companies listed on the Indonesia Stock Exchange. The study encompasses a population of 178 manufacturing firms, with a purposive sampling technique employed to select a representative sample of 35 companies. Over a three-year period from 2020 to 2022, a total of 105 observations were gathered. The data for this study was sourced from the official website of the Indonesia Stock Exchange. Employing multiple linear regression analysis, the study's findings reveal that while tax avoidance shows a negative and insignificant effect on firm value, and firm size displays a positive yet insignificant influence, whereas leverage significantly enhances firm value. This research provides insightful implications for financial management practices within the manufacturing sector.

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