The Effect of Financial Distress, Leverage, and Tax Avoidance on Firm Value with Firm Size as a Moderator
DOI:
https://doi.org/10.35129/simak.v23i02.655Keywords:
Financial Distress, Leverage, Tax Avoidance, Firm Size, Firm ValueAbstract
This study aims to determine the effect of financial distress, leverage, and tax avoidance on firm value with firm size as a moderating variable in the Indonesian consumer cyclicals sector. This type of research is quantitative research with a sampling method using purposive sampling, so that a sample of 57 companies in the consumer cyclicals sector is obtained. The data in this study was taken over a 5-year period from 2020-2024, so that the sample obtained was 285 processed data. The research data was analyzed using SPSS software. The findings indicate that financial distress and leverage substantially affect firm value, while tax avoidance has no significant direct effect. Firm size significantly influences the relationship between financial distress and firm value, suggesting that larger organizations are better able to withstand financial distress. However, firm size does not significantly moderate the effect of leverage and tax avoidance on firm value. This study enhances the literature by emphasising the influence of firm size on the effect of financial distress on firm value. The findings offer insights for managers and investors regarding the importance of internal financial indicators and organizational scale in maintaining firm value, especially during periods of financial uncertainty.
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