THE ROLE OF CORPORATE TRANSPARENCY IN MODERATING THE EFFECT OF TAX PLANNING, PROFITABILITY, AND LIQUIDITY ON COMPANY VALUE

Abstract

This research was conducted to analyze the effect of tax planning, profitability, and liquidity as well as the moderating impact of corporate transparency on the value of retail companies listed on the Indonesia Stock Exchange in the period 2015 to 2021. Using a causality approach and multiple linear regression on 224 panel data with STATA 16 software, this study found a positive effect of profitability on company value, while corporate transparency has a negative effect, and found no significant effect of tax planning and liquidity on firm value. In addition, it is known that company transparency weakens the effect of tax planning on company value, while it does not have a significant moderating effect on the effect of profitability and liquidity on company value. These results indicate that investors on the Indonesia Stock Exchange are interested in the level of profitability of retail companies, and in vice versa the company's transparency are not investors’s favorite.