CAPITAL STRUCTURE, TAX AVOIDANCE, PROFITABILITY AND FIRM VALUE IN MALAYSIA AND INDONESIA

The research aims to analyze the impact of capital structure and profitability on firm value, with tax avoidance serving as a mediating variable. The study was conducted on all non-financial companies in Malaysia and Indonesia from 2020 to 2023. The sample was selected using purposive sampling, and secondary data were drawn from financial statements. The research population includes companies listed in Malaysia and Indonesia during the specified period. The findings indicate that capital structure has a negative and significant effect on firm value, while profitability has a positive and significant effect. Additionally, capital structure positively influences tax avoidance, whereas profitability negatively impacts tax avoidance. Tax avoidance does not mediate the relationship between capital structure and firm value or between profitability and firm value. However, tax avoidance has a negative and significant effect on firm value in non-financial companies across both countries during the 2020-2023 period.