Influence Capital Structure, Policy Dividends, Profitability and Tax Avoidance on Intrinsic Firm Value
DOI:
https://doi.org/10.37385/ijedr.v5i1.4091Keywords:
Intrinsic Firm Value, Profitability, Tax AvoidanceAbstract
This study examines the effect of capital structure, dividend policy, profitability, and tax avoidance on intrinsic firm value in manufacturing companies. This study used purposive sampling and used secondary data from financial statements. The data were processed with a multiple linear regression analysis test method. Structured capital significantly and negatively affects intrinsic firm value, indicating that the company depends on debt with a high level of debt burden. Profitability is proven to be a predictor in shaping the intrinsic firm value, with the results having a significant effect on intrinsic firm value. Dividend policy and tax avoidance have no effect on intrinsic firm value. The intrinsic firm value must be managed by management because it is a factor that investors pay attention to so the company should manage the resources, assets, and capital to gain profits. The need for optimization and efficiency of the use of debt in the company's operations. The research findings indicate the need to improve corporate governance and minimize risks related to tax avoidance and dividend policy.This study adds an analysis of the effect of tax avoidance to find an explanation of whether tax avoidance is seen as an effort to carry out tax planning or as a non-compliance and its impact on the intrinsic firm value.
References
Abor, J., & Bokpin, G. A. (2010). Investment opportunities, corporate finance, and dividend payout policy: Evidence from emerging markets. Studies in Economics and Finance , 27 (3), 180–194. https://doi.org/10.1108/10867371011060018/FULL/XML
Ajanthan, A. (2013). The Relationship between Dividend Payout and Firm Profitability: A Study of Listed Hotels and Restaurant Companies in Sri Lanka. International Journal of Scientific and Research Publications , 3 (6). www.ijsrp.org
Alghifari, ES, Solikin, I., Nugraha, N., Waspada, I., Sari, M., & Puspitawati, L. (2022). Capital structure, profitability, hedging policy, firm size, and firm value: Mediation and moderation analysis. Journal of Eastern European and Central Asian Research (JEECAR) , 9 (5), 789–801. https://doi.org/10.15549/JEECAR.V9I5.1063
Asad, M., & Yousaf, S. (2014a). Impact of Leverage on Dividend Payment Behavior of Pakistani Manufacturing Firms. International Journal of Innovation and Applied Studies , 6 (2), 216–221. http://www.ijias.issr-journals.org/
Asad, M., & Yousaf, S. (2014b). Impact of Leverage on Dividend Payment Behavior of Pakistani Manufacturing Firms. International Journal of Innovation and Applied Studies , 6 (2), 216–221. http://www.ijias.issr-journals.org/abstract.php?article=IJIAS-14-129-04
Bahraini, Endri, Santoso, Hartati, P. (2021). Determinants of Firm Value: A Case Study of the Food and Beverage Sector of IndonesiaNo Title. Journal of Asian Finance, Economics and Business , 8 (6), 839–847. https://doi.org/10.13106/JAFEB.2021.VOL8.NO6.0839
Boateng, K., Asare, N., & Mcbright, A. (2016). Munich Personal RePEc Archive The Effect of Debt Policy on Firms Performance?: Empirical Evidence from Listed Manufacturing Companies on The Ghana Stock Exchange THE EFFECT OF DEBT POLICY ON FIRMS' PERFORMANCE?: 7 (75200), 70–77. https://doi.org/10.9790/5933-0706037077
Bornilla Gacus, R., & Hinlo, J.E. (2018). The Reliability of Constant Growth Dividend Discount Model (DDM) in Valuation of Philippine Common Stocks. Int J Econ Manag Sci , 7 , 1. https://doi.org/10.4172/2162-6359.1000487
Chandra, K., Fachrudin, Sadalia, I., & Siburian, R. (2017). The Effect of Capital Structure, Profitability and Dividend Policy on Intrinsic Value of Firms . https://dupakdosen.usu.ac.id/handle/123456789/69487
Dao, BTT, & Ta, TDN (2020). A meta-analysis: capital structure and firm performance. Journal of Economics and Development , 22 (1), 111–129. https://doi.org/10.1108/jed-12-2019-0072
Hidayat, SW, & Pesudo, DAA (2019). The Influence of Tax Planning and Managerial Ownership on Company Value with Company Transparency as a Moderating Variable. International Journal of Social Science and Business , 3 (4), 367. https://doi.org/10.23887/ijssb.v3i4.21323
Hirdinis, M. (2019). Capital structure and firm size on firm value moderated by profitability. International Journal of Economics and Business Administration , 7 (1), 174–191. https://doi.org/10.35808/ijeba/204
Ifada, LM, Faisal, F., Ghozali, I., & Udin, U. (2019). Company attributes and firm value: Evidence from companies listed on Jakarta Islamic index. Espacios , 40 (37), 1–14.
Ifada, LM, Ghozali, I., & Faisal. (2021). Corporate social responsibility, normative pressure and firm value: evidence from companies listed on the Indonesian stock exchange. Advances in Intelligent Systems and Computing , 1194 AISC , 390–397. https://doi.org/10.1007/978-3-030-50454-0_38
Ifada, LM, Ifada, LM, & Kusumadewi, N. (2014). The Influence of Net Profit, Operational Cash Flow, Investment Opportunity Set and Firm Size on CASH Dividends (Case Study of Manufacturing Companies on the Indonesia Stock Exchange 2010-2012). Journal of Accounting Dynamics , 6 (2), 177–190. https://doi.org/10.15294/jda.v6i2.3256
Ifada, LM, Indriastuti, M., & Hanafi, R. (2020). the Role of Cash Holding in Increasing Firm Value. Journal of Contemporary Accounting Research , 12 (2), 81–86. https://doi.org/10.23969/jrak.v12i2.3193
Ilona, D., Seprianti, T., & Mary, H. (2021). UPI YPTK Journal of Business and Economics (JBE) Listed in Indonesia Stock Exchange (IDX) . 6 (1), 1–6.
Iturriaga, F. J. L., & Crisóstomo, V. L. (2014). Do Leverage, Dividend Payout, and Ownership Concentration Influence Firms' Value Creation? An Analysis of Brazilian Firms. Http://Dx.Doi.Org/10.2753/REE1540-496X460306 , 46 (3), 80–94. https://doi.org/10.2753/REE1540-496X460306
Kamran, K., Lamrani, H.C., & Khalid, S. (2019). The impact of dividend policy on firm performance: A case study of the industrial sector. Risk Governance and Control: Financial Markets and Institutions , 9 (3), 23–31. https://doi.org/10.22495/rgcv9i3p2
Kristianti, D., & Foeh, JEHJ (2020). The Impact Of Liquidity And Profitability On Firm Value With Dividend Policy As An Intervening Variable (Empirical Study Of Manufacturing Companies In The Pharmaceutical Sub Sector Listed On The Indonesia Stock Exchange In 2013-2017). Journal of Business and Entrepreneurship , 16 (1), 65–78. https://doi.org/10.31940/JBK.V16I1.1829
Lena, PM, Tanjung, AR, Yesi, D., & Basri, M. (2018). ANALYSIS OF THE INFLUENCE OF THE CAPITAL STRUCTURE OF THE COMPANY?: THE COMPANY'S GROWTH AND PROFITABILITY AS A MODERATING VARIABLE (EMPIRICAL STUDY OF CORPORATE PROPERTY AND REAL ESTATE IN BEI 2010-2014). Journal of Economics , 25 (1), 93. https://je.ejournal.unri.ac.id/index.php/JE/article/view/6033
Maxwell, O., & Kehinde, F. (2012). Capital Structure and Firm Value: Empirical Evidence from Nigeria. International Journal of Business and Social Science , 3 (19). www.ijbssnet.com
Prawati, LD, Millenia, S., & Kristianti, T. (2022). Analyzing the Effects of Business Strategy, Tax Avoidance, and Dividend Policy on Company Value: An Empirical Study. ACM International Conference Proceedings Series , 117–123. https://doi.org/10.1145/3512676.3512696
Purwohandoko. (2017). The Influence of Firm's Size, Growth, and Profitability on Firm Value with Capital Structure as the Mediator: A Study on the Agricultural Firms Listed in the Indonesian Stock Exchange. International Journal of Economics and Finance , 9 (8). https://doi.org/10.5539/ijef.v9n8p103
Razali, MWM, Ghazali, SS, Lunyai, J., & Hwang, JYT (2018). Tax Planning and Firm Value: Evidence from Malaysia. International Journal of Academic Research in Business and Social Sciences , 8 (11), 210–222. https://doi.org/10.6007/ijarbss/v8-i11/4896
Suhendi, C., Ifada, LM, & Winarsih. (2022). Conceptual Paper Tax Avoidance and Firm Value in Manufacturing Companies: A Case Study for Companies in Indonesia. Lecture Notes in Networks and Systems , 497 LNNS , 280–290. https://doi.org/10.1007/978-3-031-08812-4_27/COVER
Sumartha, E. (2016). The Influence of Ownership Structure on Dividend Policy in Manufacturing Companies. Economia Journal , 12 (2), 167. https://doi.org/10.21831/economia.v12i2.11114
Tamrin, M., Mus, HR, & Arfah, A. (2018). Effect of profitability and dividend policy on corporate governance and firm value: Evidence from the Indonesian manufacturing Sectors. IOSR Journal of Business and Management (IOSR-JBM) , 19 (10), 66–74. https://doi.org/10.9790/487X-1910086674
Toumi, F., Khlif, H., & Khelil, I. (2022). National culture and audit report lag: cross-country investigation. Journal of Economic and Administrative Sciences . https://doi.org/10.1108/JEAS-03-2022-0066
Trihermanto, F., & Nainggolan, YA (2020). Corporate life cycle, CSR, and dividend policy: empirical evidence from Indonesian listed firms. Social Responsibility Journal , 16 (2), 159–178. https://doi.org/10.1108/SRJ-09-2017-0186/FULL/XML
Ullah, A., Pinglu, C., Ullah, S., Zaman, M., & Hashmi, SH (2020). The nexus between capital structure, firm-specific factors, macroeconomic factors and financial performance in the textile sector of Pakistan. Heliyon , 6 (8), e04741. https://doi.org/10.1016/J.HELIYON.2020.E04741
Wafirotin, KZ, Accounting, J., Economy, F., Ponorogo, UM, & Program, B. (2012). Equilibrium Journal, Volume 10, Number 1, September 2012. Equilibrium Journal , 10 (September), 70–75.
Wahjudi, E. (2020). Factors influencing dividend policy in manufacturing companies in Indonesia Stock Exchange. Journal of Management Development , 39 (1), 4–17. https://doi.org/10.1108/JMD-07-2018-0211/FULL/XML