Tax Avoidance and Information Asymmetry on Firm Value: The Moderating Effect of Institutional Ownership

Abstract

Management tries to maximize the value of the company by maximizing the company's performance because investors really appreciate the value of the company. This can be seen from the many businesses that are competing to maximize profits by utilizing available resources. With institutional ownership as a moderator, this study aims to investigate and collect empirical data on the effect of tax avoidance and information asymmetry on firm value. A number of BUMN20 IDX companies from 2015 to 2021 were employed in this analysis. Purposive sampling was used to select this research sample, and 12 companies were selected as the research sample. Over the past 7 (seven) years, 84 companies have consistently published financial reports and annual reports. Associative quantitative research is the method used in this research. Regression Evaluation using panel data is the technique. According to the research findings, tax evasion reduces firm value, information asymmetry has no discernible impact on firm value, institutional ownership cannot control tax evasion and information asymmetry, and firm value is negatively affected by both simultaneously.