Firm Value Enhancement through Moderation of Non-Financial Performance

This study investigates the influence of tax avoidance on firm value, both directly and through the moderating role of non-financial performance, specifically corporate social responsibility (CSR) and audit committees. Using a quantitative explanatory design with an indirect effect approach, tax avoidance is proxied through the Cash Effective Tax Rate (CETR), non-financial performance is measured by CSR disclosure and audit committee presence, and firm value is assessed through Tobin's Q. The research was conducted on 46 technology sector companies listed in Indonesia for the 2020–2023 period, with 31 samples selected using purposive sampling. The data were analyzed using Moderated Regression Analysis (MRA). The results show that tax avoidance significantly affects firm value, both directly and through the moderation of non-financial performance. CSR demonstrates a stronger moderating influence than the audit committee. The novelty of this study lies in its identification of the audit committee's role as a moderator in the relationship between tax avoidance and firm value—an interaction that has not been explored in previous research. These findings imply that non-financial governance mechanisms, especially CSR, can enhance the positive impact of tax avoidance strategies on firm value, suggesting the need for companies to strengthen their ethical and supervisory frameworks to boost market confidence and sustainability.