The effect of tax avoidance and political connection on firm value: Institutional ownership as moderating variable
Yükleniyor...
Tarih
2025
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
İstanbul Ticaret Üniversitesi
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
This research examined the effect of tax avoidance and political connection on firm value with institutional ownership as a moderating variable. It was motivated by many firms that have taken tax avoidance actions in the last period. Tax avoidance activities can reduce firm value from the public perspective. Furthermore, when a business commits a tax offense, it is considered to have violated the law. Tax avoidance activities are conducted to fulfill the interests of firm management instead of the shareholders, which may result in agency conflict. This conflict can be minimized by implementing corporate governance with institutional ownership mechanisms. The existence of institutional ownership can effectively oversee the management. Institutions can also evaluate management performance, reducing tax avoidance activities and controlling political connection between firms and the government. Therefore, firm value cannot be reduced in the long term from the public perspective.This research used secondary data from Manufacturing Firm Financial Reports during 2017- 2019. Statistical analysis and hypothesis testing were performed using Smart-PLS software. The results showed that tax avoidance and political connection do not affect firm value. Furthermore, institutional ownership cannot moderate the relationship between tax avoidance and firm value. This research considered institutional ownership as part of corporate governance that can moderate the relationship between tax avoidance, political connection to firm value, and the relationship between tax avoidance and firm value. Meanwhile, institutional ownership could moderate the relationship between political connection to firm value.
Açıklama
Anahtar Kelimeler
Tax Avoidance, Political Connection, Firm Value, Institutional Ownership
Kaynak
International Journal of Commerce & Finance
WoS Q Değeri
Scopus Q Değeri
Cilt
11
Sayı
1
Künye
Handayani, Y. D., & Ibrani, E. Y., & Yoshida, D. (2025). The Effect of Tax Avoidance and Political Connection on Firm Value: Institutional Ownership as Moderating Variable. International Journal of Commerce & Finance, 11(1), 45-61.
