Managerial ownership, capital structure, and tax avoidance: evidence on firm value in Indonesian property companies

Abstract

Purpose: to empirically examine the effect of managerial ownership, capital structure, and tax avoidance on firm value in property and real estate companies.

Method: this study employed a quantitative associative approach using secondary data obtained from the annual reports of property and real estate companies listed on the Indonesia Stock Exchange (IDX) during 2019–2024. The sample was selected using purposive sampling, resulting in 11 companies with 66 observations. Data were analyzed using panel data regression with EViews 12, including descriptive statistics, model selection tests, classical assumption tests, and hypothesis testing.

Findings: managerial ownership has a significant negative effect on firm value, while capital structure and tax avoidance have no significant effect on firm value. However, managerial ownership, capital structure, and tax avoidance jointly have a significant effect on firm value. The model explains only a limited proportion of the variation in firm value, suggesting that other factors outside the model may play a larger role in determining firm value.

Implications: companies should strengthen corporate governance, managerial accountability, and prudent financial and tax management to support firm value.

Originality: by examining the effects of managerial ownership, capital structure, and tax avoidance on firm value in property and real estate companies listed on the Indonesia Stock Exchange during 2019–2024.