Title:
The Effect of Intellectual Capital, Tax Avoidance and Leverage on Firm Value and Profitability

Authors:
Ika Irwana, Sutrisno, Indonesia

Abstract:

The company's goal is to obtain optimum profitability and increase the firm value in the capital market. This study aims to examine the effect of intellectual capital, tax avoidance and leverage on firm value and profitability. Firm value is measured by price to book value (PBV), and profitability is measured by return on assets (ROA). While the variables that affect firm value consist of intellectual capital (IC), tax avoidance (TA), and leverage as measured by debt to equity ratio (DER). The population in this study were 36 mining companies listed on the Indonesia Stock Exchange (IDX), and 24 companies were taken as a sample using purposive sampling method. The observation period is five years (2017-2021) taken from the annual report. Hypothesis testing using multiple regression with a significance level of 0.05. The results of the study show that intellectual capital and tax avoidance have a significant and negative effect on firm value, while leverage has a significant and positive effect on firm value, and profitability has no effect on firm value. Other results show that intellectual capital and leverage have a significant and positive effect on profitability, while tax avoidance has no effect on profitability.

DOI: https://doi.org/10.51505/IJEBMR.2023.7301