Analysis of The Impact of Tax Avoidance and Financial Performance on Stock Price of Technology Sector Companies

Abstract

The aim of this study is to examine the impact of tax avoidance and financial performance on the stock prices of technology sector companies. The population in this study consists of 47 technology sector companies listed on the Indonesia Stock Exchange. The sample selection for this study uses purposive sampling, and 23 companies have met the criteria. The data is analyzed using multiple linear regression analysis. The results of the study indicate that tax avoidance, current ratio, and debt to equity ratio do not affect stock prices. However, return on equity and price-earnings ratio have a significant positive impact on stock prices. This research can be beneficial as a consideration for investors and prospective investors in making decisions regarding the purchase, retention, or sale of company stocks. Additionally, this research can serve as an evaluation tool to help companies enhance their stock prices. This is the first study to use tax avoidance as an independent variable affecting the stock prices of technology sector companies.