Analyzing The Effects of Business Strategy, Tax Avoidance, and Dividend Policy on Company Value: An Empirical Study

Abstract

A company's value is an important aspect to be maintained in the company. There will be more possible investors for the company if its value is high. The goal of this research is to look at the effect of business strategy, tax avoidance, and dividend policy on company value. Business strategy is one of the variables that investors consider when determining if a company is performing well. Tax avoidance is a risky business practice; thus, investors will be skeptical about the company and might choose not to invest in it. Dividend policy is one indication that the company is profitable; investors will want to invest in a profitable company. As a result, maintaining the company's value from a stakeholder standpoint is critical. The samples used are 29 manufacturing companies for 5 periods (2016-2020), so the total samples were 145 samples. The data used derives from the company's financial statements, which are available on the company's official website or the IDX website. The data were analyzed using panel data regression analysis. This study found that dividend policy has a positive effect on company value, meaning that the more profitable management's dividend policy is for investors, the company's value will increase because dividend distribution is considered as a return on investment and make investors feel more profitable. Finally, implications are discussed based on the findings.