THE EFFECT OF TAX AVOIDANCE ON COMPANY VALUE WITH PROFIT QUALITY AS AN INTERVENING VARIABLE

Abstract

This study aims to examine the relationship of tax avoidance to firm value with earnings quality as an intervening variable in companies engaged in manufacturing in Indonesia. The sample in this study are manufacturing companies listed on the Indonesia Stock Exchange in 2017 - 2022. This type of research is quantitative research. The research sample used as many as 134 manufacturing companies listed on the Indonesia Stock Exchange in 2017 - 2022. The data used are financial reports and annual reports issued by the company each year. The sampling technique uses purposive sampling method. The results of this study indicate that tax avoidance has no effect on earnings quality, earnings quality has a positive effect on firm value and tax avoidance has a negative effect on firm value. In addition, this study also shows that earnings quality cannot be an intervening variable in the relationship of tax avoidance and firm value.