Measuring Determination of Factors Affecting Firm Value in Agricultural Sector Companies in Indonesia
DOI:
https://doi.org/10.33830/jfba.v2i1.3643.2022Keywords:
Firm Value, Earnings Management, Tax Avoidance, Debt PolicyAbstract
The purpose of this study is to use a panel data model to examine the factors that impact firm value in agriculture sector enterprises in Indonesia. Management initiatives such as earnings management, tax evasion, and debt strategy all influence business value. According to the findings of this study, all variables studied (earnings management, tax evasion, and debt policy) have an impact on business value. All of these variables have a 79.34 percent impact on the company's valuation, with the remaining 20.46 percent impacted by variables outside of the model. Meanwhile, independent studies show that debt and management strategies have little influence and have a negative link with business value. The study's findings may give more information on what elements may be included in measuring business value, which may have implications for investors, particularly those in agriculture sector companies listed on the stock exchange.
References
Apriyanti, N.M., & Aryani, N.K.L. (2016). The Effect of Long-Term Tax Avoidance on Company Value With Executive Character As Moderating Variable. Udayana University Accounting E-Journal, 16(3), 2231–2259. https://ojs.unud.ac.id/index.php/Accounting/article/view/20623
Chowdhuri, A & Chowdhuri, S. P. (2010). Impact of Capital Structure on Firm's Value: Evidence from Bangladesh. Business and Economic Horizons, 3(3), 111-122. https://ideas.repec.org/a/ags/pdcbeh/128681.html
Chrisman, J.J. (2019). Stewardship theory: realism, relevance, and family firm governance. Entrepreneurship: Theory and Practice, 43(6), 1051–1066. https://doi.org/10.1177/1042258719838472
Darwis, H. (2012). Earnings Management on Company Value with Corporate Governance as Moderating. Journal of Finance and Banking, 16(1), 45-55. https://doi.org/10.26905/jkdp.v16i1.1045
Davis, J.H, Schoorman, F. D, & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20–47. https://doi.org/10.2307/259223
Donaldson, L., & Davis, J.H. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16(1), 49–64. https://doi.org/10.1177/031289629101600103
Dwiastuti, DS & Dillak, VJ (2019). The Influence of Company Size, Debt Policy, and Profitability on Firm Value (Case Study on Manufacturing Companies in the Basic and Chemical Industry Sector Listed on the Indonesia Stock Exchange 2013-2017). ASSET Journal (Research Accounting), 11(1), 137-146. https://doi.org/10.17509/jaset.v11i1.16841
Esther, Y., & Hubarat, F. (2020). Effect of Tax Avoidance and Profitability on Firm Value in Cosmetics and Household Goods Sub-Sector Companies. JIAI Indonesian Journal of Scientific Accounting, 5(2), 1689–1699. https://doi.org/10.32528/jiai.v5i2.3756
Etemadi, H. & Sepasi, S. (2007). A Relationship between Income Smoothing Practices and Firms Value in Iran, Iranian Economic Review, 13(20), 25-42.
Fadillah, H. (2019). The Effect of Tax Avoidance on Firm Value With Institutional Ownership as a Moderating Variable. JIAFE (Scientific Journal of Accounting, Faculty of Economics), 4(1), 117–134. https://doi.org/10.34204/jiafe.v4i1.1082
Fernandes, N. & Ferreira, MA (2007). The Evolution of Earnings Management and Firm Valuation: A Cross-Country Analysis. European Finance Association Conference, Slovenia, 2–39.
Fitriasari, NMAD, & Sari, MMR (2019). The Effect of Intellectual Capital on Firm Value with Financial Performance as an Intervening Variable. E-Journal of Accounting, 26, 1717. https://doi.org/10.24843/eja.2019.v26.i03.p02
Gill, A., Biger, N., Mand, HS, & Mathur, N. (2013). Earnings Management, Firm Performance, and the Value of Indian Manufacturing Firm. International Research Journal of Finance and Economics, Issue 116. 120-132. https://scholarworks.waldenu.edu/sm_pubs/65/
Godfrey, J., Hodgson, A., Tarca, A., Hamilton, J., & Holmes, S. (2010). Accounting Theory (Milton (Ed.), 7th ed.). John Wiley & Sons.
Jiraporn, P., Miller, GA, Yoon, SS, and Kim, YS (2008). Is Earnings Management Opportunistic or Beneficial? An Agency Theory Perspective, International Review of Financial Analysis, 17(3), 622-634. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=917941
Khoirunnisa, L. & Wijaya, I. (2019). Debt Policy as Moderating Relationship between Profitability and Firm Value, Journal of Economics: Journal of Economics, 10(1), 36-43. https://doi.org/10.47007/jeko.v10i1.2761
Kurniawansyah, D. (2018). Is Earnings Management Cheating? : Literature Analysis. Airlangga Journal of Accounting and Business Research, 3(1), 341–356. https://doi.org/10.31093/jraba.v3i1.97
Lestari, N. & Ningrum, SA (2018). The Effect of Earnings Management and Tax Avoidance on Firm Value With Audit Quality As a Moderating Variable. Journal of Applied Accounting and Taxation, 3(1), 99-109. https://doi.org/10.5281/zenodo.1305187
Mahaetri, KK, & Muliati, NK (2020). The Effect of Tax Avoidance on Firm Value With Good Corporate Governance as a Moderating Variable. Hita Accounting and Finance University of the Hindu University of Indonesia, 1(1), 436–464. https://ejournal.unhi.ac.id/index.php/HAK/article/view/786
Mahrani, M., & Soewarno, N. (2018). The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable. Asian Journal of Accounting Research, 3(1), 41–60. https://doi.org/10.1108/ajar-06-2018-0008
Midiastuty, PP, Suranata, E., & Kristina. (2017). The Effect of Tax Avoidance on the Company's Capital Structure. In XX National Accounting Symposium. Jember. https://doi.org/https://dx.doi.org/10.1111/febs.12555
Mustika, D., Ratnawati, V., & Basri, YM (2019). The Influence of Tax Avoidance And Earnings Management On Firm Value With Moderation Of Corporate Governance. Journal of Accounting, 8, 93–106.
Nasution, MS (2020). The Influence of Debt Policy on the Value of Banking Companies Listed on the Indonesia Stock Exchange. J-ISCAN: Journal Of Islamic Accounting Research, 2(1), 1-16. https://doi.org/10.52490/j-iscan.v2i1.862
Nurhanimah., Anugerah, R., & Ratnawati, V. (2018). Effect of Earning Management and Tax Avoidance on Company Value with Ownership Structure as Moderating Variable in LQ 45 IDX Group Companies in 2013-2016. Journal of Accounting and Management, 13(2), 58–74. https://doi.org/10.30871/jaba.v3i1.1281
Panggabean, MR (2018). The Influence of Corporate Social Responsibility, Company Size, Capital Structure and Tax Avoidance on Company Value. STIE Widya Wiwaha Business Studies, 26(1), 82–94. https://doi.org/10.32477/jkb.v26i1.266
Pertiwi, PJ, Tommy, P. & Tumiwa, JR (2016). The Influence of Debt Policy, Investment Decisions and Profitability on the Value of Food and Beverages Companies Listed on the Indonesia Stock Exchange. EMBA Journal, 4(1), 1369-1380. https://doi.org/10.35794/emba.4.1.2016.12357
Rajaguguk, B., Johanrindu, VA, & Adi, PH (2018). The Effect of Tax Avoidance And Financial Performance On Company Value With Corporate Governance As Moderating. Journal of Accounting Science and Research (JIRA), 5(2), 58–70. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/1032
Ridwan, M. & Gunardi, A. (2013) The Role of Corporate Governance Mechanisms as Moderating Earning Management Practices on Company Value. Trichonomics, 12(1), 49-60.
Sari, HN, Astuti, TP & Suseno, AE (2018). Effect of Earnings Management and Dividend Policy on Firm Value. Journal of Contemporary Accounting (JAKO), 10(1), 46-55. https://doi.org/10.33508/jako.v10i1.2193
Scott, WR (2015). Financial Accounting Theory. Canada: Pearson.
Sitinjak, M., & Andreas Basri, YM (2018). The effect of long-term tax avoidance on firm value. Journal of Accounting, 6(2), 1–27. https://ja.ejournal.unri.ac.id/index.php/JA/article/view/5267
Somantri, I. & Sukardi, H. A. (2018). The Influence of Investment Decisions, Debt Policy and Dividend Policy on Firm Value. JEMPER (Journal of Banking Management Economics), 1(1), 1-10. https://doi.org/10.32897/jemper.v1i1.125
Suarmita, IN (2017). The Effect of Earnings and Debt Management on Firm Value with Good Corporate Governance (GCG) as Moderating. Udayana University Economics and Business Journal, 6(1), 935-962. https://ojs.unud.ac.id/index.php/EEB/article/view/16981
Tandean, VA, & Jonathan. (2016). Effect of Tax Avoidance on Firm Value With Profitability as Moderating Variable. Proceedings of the Multi-Disciplined National Seminar on Science & Call For Papers UNISBANK, 703–708. https://unisbank.ac.id/ojs/index.php/sendi_u/article/view/4258
Victory, G., & Cheisviyani, C. (2016). The Effect of Long-Term Tax Avoidance on Company Value with Institutional Ownership as Moderating Variable (Empirical Study on Manufacturing Companies listed on the Indonesia Stock Exchange for the period 2011-2012). Diponegoro Journal of Accounting, 4(1), 111–123. https://doi.org/10.24036/wra.v4i1.7219
Violeta, AC, & Serly, V. (2020). The Effect of Profit Management and Tax Avoidance on Firm Value (Empirical Study on Banking Companies Listed on the Indonesia Stock Exchange 2014-2018). Forum for Accounting Research, 8 (1), 1-13. https://doi.org/10.24036/wra.v8i1.109054
Wardani, DK, & Juliani, J. (2018). The Effect of Tax Avoidance on Company Value With Corporate Governance as Moderating Variable. Nominal, Barometer of Accounting and Management Research, 7(2). https://doi.org/10.21831/nominal.v7i2.21349
Warno, W., & Fahmi, U. (2020). The Effect of Tax Avoidance and Agency Costs on Firm Value With Audit Quality As Moderating Variable In Lq45 Companies. EL MUHASABA: Journal of Accounting (e-Journal), 11(2), 188–201. https://doi.org/10.18860/em.v11i2.9225
Wedyanti, PA, Mendra, NPY, & Saitri, PW (2021). The Effect of Dividend Policy, Debt Policy, Profitability and Company Size on Firm Value in Manufacturing Companies in 2017 – 2019. Journal of Kharisma, 3(2), 90-100. https://e-journal.unmas.ac.id/index.php/kharisma/article/view/2602
Wijaya, RA, Candana, DM, Zefriyenni, & Ridwan. (2020). The Influence of Intellectual Capital on Firm Value with Profitability as an Intervening Variable (Study on Mining Companies Listed on the Indonesia Stock Exchange 2014-2018 Period). 2(1), 81–95. https://doi.org/10.31933/JIMT
Yorke, SM, Amidu, M., & Boateng, CA (2016). The effects of Earnings Management and Corporate Tax Avoidance on Firm Value. International Journal of Management Practice. 9(2), 112-131. DOI:10.1504/IJMP.2016.076741
