The Impact of Tax Planning, Deferred Tax Expense, and Corporate Governance on the Value of Manufacturing Companies Listed on the Indonesia Stock Exchange

Abstract

Rapid economic growth and technological advancement have intensified competition among manufacturing firms, requiring effective financial strategies to enhance firm value. Tax planning, deferred tax expense, and corporate governance are considered strategic factors influencing company value, particularly in publicly listed manufacturing firms. This study employed a quantitative associative approach using secondary data from audited financial statements of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2022–2024. The final sample consisted of 43 firms selected through purposive sampling. The data were analyzed using multiple linear regression. Classical assumption tests included normality (Kolmogorov–Smirnov), linearity, multicollinearity, autocorrelation (Run Test), and heteroscedasticity (Glejser Test). The coefficient of determination (R²), F-test, and t-test were applied to evaluate simultaneous and partial effects. The regression results show that tax planning, deferred tax expense, and corporate governance simultaneously have a significant effect on firm value (F = 18.404; p = 0.001). The correlation coefficient (R = 0.685) indicates a strong relationship, while the coefficient of determination (R² = 0.483) shows that 48.3% of firm value variation is explained by the independent variables. However, partially, none of the variables significantly affect firm value (p > 0.05), suggesting that their influence is stronger collectively than individually. The findings indicate that financial and governance mechanisms jointly influence firm value, although their individual contributions are not statistically significant.