THE INFLUENCE OF TAX PLANNING AND ROA ON COMPANY VALUE WITH MANAGERIAL OWNERSHIP AS A MODERATION VARIABLE (STUDY ON PRIMARY CONSUMER GOODS AND RAW GOODS SECTORS TRADING COMPANIES LISTED IN THE YEAR 2017-2021 ON THE INDONESIAN STOCK EXCHANGE)

Abstract

This research was conducted to analyze whether tax planning and Return on Assets (ROA) influence firm value among companies operating in the primary consumer goods and raw materials sector listed on the Indonesia Stock Exchange. The observation period covered the years 2017–2021, while managerial ownership was included as a moderating variable. Using a purposive sampling method, the study obtained 20 companies as samples and observed them over five years, resulting in 100 research data collected from corporate financial statements. Based on the F-test in the third regression model, the significance value of 0.856 demonstrates that tax planning and ROA do not simultaneously affect firm value. In contrast, the sixth regression model produced a significance value of 0.001, indicating that managerial ownership is capable of moderating the simultaneous relationship between tax planning, ROA, and firm value. The findings further show that, individually, tax planning and ROA have no significant effect on firm value, as evidenced by the significance values of 0.644 and 0.720 in the first and second regression models. Moreover, managerial ownership was also found incapable of partially moderating the relationship between tax planning and firm value as well as between ROA and firm value, since the significance values in the fourth and fifth regression models were above the specified criteria.