The Effect of Profitability and Tax Avoidance on Profit Management and Its Impact on Company Value

Lawe Anasta


This study aims to examine and assess the influence of Profitability and tax avoidance to Firm Value to Implementation of Earnings Management as an intervening variable (Empirical Study on Manufacturing Companies Listed on Indonesia Stock Exchange for the period 2013 – 2017). The data used in this research is secondary data in the form of annual report and audit report as of December 31. The research data was taken from the official website of Indonesia Stock Exchange and the website of each company. The population in this research were 225 companies with a study period of 2013 to 2017. The sample used as many as 45 manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2013 – 2017. The samples using purposive technique. These results indicate that profitability and tax avoidance had a positive significant effect on firm value. Profitability had a positive significant effect on earning management. Tax avoidance have no influence on earning managements. Earning management has no influence on firm value. Earning management does not mediate the relationship between profitability and tax avoidance with an intervening test pass.

Keywords: Profitability, Tax Avoidance, Firm Value, Earning Managements

DOI: 10.7176/EJBM/11-27-04

Publication date:September 30th 2019


Full Text: PDF
Download the IISTE publication guideline!

To list your conference here. Please contact the administrator of this platform.

Paper submission email:

ISSN (Paper)2222-1905 ISSN (Online)2222-2839

Please add our address "" into your email contact list.

This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.

Copyright ©