Tax Avoidance and Firm Value: International Evidence*

The Effect Of Tax Avoidance On Firm Value With Earnings Management As A Mediation Variable

“…Results of previous research conducted (Inanda et al, 2018), (Prasetya et al, 2023), (Siew Yee et al, 2018) states that tax avoidance can lower a firm' value and that the more work required to carry out tax avoidance, the lower the firm value will be. Contrasting with the findings of earlier investigations (Lee & Choi, 2022), (Tang, 2019), (Moradi. M., Mohammadi, M. & Saeedi, 2015), (Herdiyanto & Ardiyanto, 2015), (Noor Afifah & Mona Adriana P, 2023) which states that tax avoidance can increase firm value, when the firm succeeds in tax avoidance, the profit will be remaining after paying taxes will be greater, so the value of the firm will more increasing.…”

“…Rel sults of prel vious rel sel arch conductel d (Lee & Choi, 2022), (Tang, 2019), (Moradi. M., Mohammadi, M. & Saeedi, 2015), (Herdiyanto & Ardiyanto, 2015),(Noor Afifah & Mona Adriana P, 2023) statel s that tax avoidancel has a positivel el ffel ct on firm valuel , whel n a firm succel el ds in implel mel nting tax avoidancel , thel tax ratel that must bel paid by thel firm will bel lowel r, so thel profit rel maining aftel r paying taxel s will bel grel atel r, thel rel by increl asing thel valuel of thel firm.…”

“…Agency theory can be used in tax avoidance practice because it can help understand how opportunistic behavior from management arises when they attempt to maximize tax profits, by maintaining high profit levels in a competitive business environment. Tax avoidance is said to be an investment with high profits that can minimize the current tax burden (Lee & Choi, 2022), so that tax avoidance is considered an activity to increase firm value (Desai & Dharmapala, 2009).…”