The Moderating Effect of Business Intelligence on Tax Avoidance to Maximize Firm Value

VALENTINA, GRACIA PULCHERIA and Mangoting, Yenni and Yuliana, Oviliani Yenty (2024) The Moderating Effect of Business Intelligence on Tax Avoidance to Maximize Firm Value. [UNSPECIFIED]

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Abstract

Organizations use innovative techniques to improve financial performance in todays ever-changing business environment. A notable trend that is gaining pace is integrating Tax Avoidance methods with Business Intelligence tools. Previous studies have generally looked at Tax Avoidance and Business Intelligence in isolation, ignoring the possible combined influence on Firm Value. This study filled that gap, attempting to thoroughly explain how Tax Avoidance and Business Intelligence interact to determine Firm Value. We used purposive sampling to evaluate 545 observations of industrial businesses listed on the Indonesian Stock Exchange from 2017 to 2021, using weighted least squares. The results showed that Tax Avoidance negatively influences Firm Value, whereas Business Intelligence has a beneficial effect. Significantly, Business Intelligence mitigated the negative impact of Tax Avoidance on Firm Value. Further investigation demonstrated that Business Intelligence reduced the negative impact of Tax Avoidance, earning investor confidence. This study created new territory by focusing on Business Intelligence as a factor impacting the link between Tax Avoidance and Firm Value. The study offered insights on strategically integrating Tax Avoidance and Business Intelligence into financial management, which had significant implications for managerial decision-making in negotiating tax difficulties and increasing Firm Value.

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