Related Party Transactions, Tax Avoidance, and Firm Value: Emerging Market Indonesia

Sendy Dwi Haryanto; Rollis Ayu Ditasari

doi:10.98765/apjbet.v3i01.121

Sendy Dwi Haryanto Departement of Vocational Tax Management, Faculty of Economics and Business, Universitas PGRI Madiun, Indonesia https://orcid.org/0000-0001-9309-7494
Rollis Ayu Ditasari Departement of Vocational Tax Management, Faculty of Economics and Business, Universitas PGRI Madiun, Indonesia

DOI: https://doi.org/10.98765/apjbet.v3i01.121

Keywords: Related Party Transactions, Tax Avoidance, Firm Value, Emerging Markets

Abstract

This study aims to determine the role of tax avoidance in strengthening the effect of related party transactions to increase firm value. The sample in this study were all companies listed on the Indonesia Stock Exchange in the 2016-2021 period, totaling 1,700 financial reports. The results of this study show that tax avoidance moderates the effect of related party transactions on increasing firm value. Tax avoidance is included in quasi-moderation due to tax avoidance interacting with related party transactions showing a significant effect on firm value. RPT is a sound business exchange that meets the economic needs of companies. RPT can have a significant impact on business transactions or business performance.