Tax amnesty and company value: Testing tax avoidance as an intervening variable

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This study aims to examine the relationship between tax amnesty on company value, analyze the role of tax avoidance behavior to determine the direct and indirect relationship of tax amnesty on company value. The population of this study are manufacturing companies listed on the Indonesia Stock Exchange after the implementation of the tax amnesty in Indonesia in 2017–2020. The sample includes 54 companies in order to obtain 216 observational data points. A multiple linear regression model was used to analyze the relationship between the variables. The tests carried out include partial coefficient tests and model accuracy tests. The results of the study reveal that tax amnesty increases the company’s efforts to do tax avoidance. Second, the tax amnesty granted by the government could increase the value of a company. Third, success in tax avoidance efforts has an impact on increasing the value of a company. Fourth, tax avoidance mediates the relationship between tax amnesty and firm value. These results indicate that although tax amnesty can increase company value, it does not guarantee that taxpayers (companies) will stop tax avoidance.

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    • Figure 1. Mediator model
    • Figure 2. Sobel test calculation
    • Table 1. Descriptive statistics
    • Table 2. Regression analysis results
    • Table 3. Partial correlation analysis results
    • Conceptualization
      Mujiyati Mujiyati
    • Formal Analysis
      Mujiyati Mujiyati
    • Funding acquisition
      Mujiyati Mujiyati
    • Investigation
      Mujiyati Mujiyati, Muhammad Abdul Aris
    • Methodology
      Mujiyati Mujiyati
    • Supervision
      Mujiyati Mujiyati, Muhammad Abdul Aris
    • Writing – original draft
      Mujiyati Mujiyati
    • Writing – review & editing
      Mujiyati Mujiyati, Zulfikar Zulfikar
    • Data curation
      Muhammad Abdul Aris, Zulfikar Zulfikar
    • Project administration
      Muhammad Abdul Aris, Zulfikar Zulfikar
    • Resources
      Muhammad Abdul Aris, Zulfikar Zulfikar
    • Software
      Muhammad Abdul Aris, Zulfikar Zulfikar
    • Validation
      Muhammad Abdul Aris, Zulfikar Zulfikar
    • Visualization
      Zulfikar Zulfikar