What Happens if Tax as a Moderating Variable on Financial Architecture with Firm Value in Indonesia?

I Wayan Wdinyana

Department of Economics, Universitas Mahasaraswati Denpasar, Indonesia, *Corresponding author: wywid@unmas.ac.id

Abstract

The main objective of this study is to examine and elucidate the impact of various aspects of financial architecture, including ownership structure, capital structure, and corporate governance, on the value of a company, with tax variables acting as moderators. The research was conducted on a manufacturing company listed on the Indonesia Stock Exchange (IDX) during the 2022 period, utilizing secondary data sources. Out of the 243 companies considered, a sample of 168 companies was selected due to the availability of complete data. The hypothesis was tested using a regression analysis with the MRA moderating variable in SPSS. The findings of the study reveal that ownership structure and corporate governance have a positive and significant influence on firm value, while capital structure does not affect the company’s value. Additionally, tax plays a significant role in moderating the impact of financial architecture on firm value.

Keywords: financial architecture, ownership structure, capital structure, corporate governance, tax, corporate value