Tax Avoidance and Firm Value in Indonesia: A Systematic Literature Review

Abstrak

This study synthesizes the relationship between tax avoidance and firm value in Indonesia, considering investor perceptions, risk, and corporate governance. A systematic literature review covers 14 quantitative articles published in 2021–2025: six identified through Scopus and eight from SINTA 2-accredited journals identified through Google Scholar. The narrative synthesis reveals mixed associations. Some studies report positive relationships linked to tax-saving benefits, whereas others report negative or statistically insignificant relationships. Differences in tax avoidance and firm value proxies, sectoral coverage, observation periods, and model specifications limit direct comparisons. Signaling and agency theories provide interpretive frameworks for considering tax-saving benefits alongside reputational risks and conflicts of interest. Investor perceptions offer a conceptual explanation for variation in the findings rather than a mechanism directly tested in every study. The review concludes that tax savings do not necessarily translate into higher firm value and that findings require context-sensitive and method-sensitive interpretation. The limited evidence base and absence of a meta-analysis constrain generalizability.