The Effect of Tax Risk, Hedging, Income Smoothing, and Volatility Cash Flows on Firm Value

Abstract

This study aims to examine the effect of tax risk, hedging, income smoothing, and the volatility of cash flows on firm value. By the objectives of management, examining the influence of several variables in this study is needed to detect the firm value.
This study uses a quantitative method, and the analysis uses multiple linear regression models. The type of data used is secondary data in the form of financial statements of companies listed on the Indonesia Stock Exchange from 2014 to 2016. The samples used in this study are non-financial companies. By using purposive sampling, the selected sample amounted to 68 non-financial companies so that the total sample amounted to 204 companies-years. The testing method in this study is multiple regression analysis with panel data.
The results of this study suggest that tax risk and cash volatility have a negative effect on firm value. Meanwhile, hedging and income smoothing do not affect firm value.