The Impact of Tax Planning and Good Corporate Governance on Firm Value

Abstract

This study highlights the pivotal role of tax planning and Good Corporate Governance (GCG) in enhancing firm value and promoting long-term sustainability. The findings show that companies with well-structured governance frameworks and strategic planning are better positioned to increase profitability, attract investors, and sustain competitiveness in the global market. The Board of Directors is instrumental in developing policies and strategies aligned with organizational objectives, while the Board of Commissioners ensures oversight and accountability, supporting balanced decision-making. Effective governance mechanisms, including independent audit committees and transparent disclosures, help reduce agency conflicts and strengthen financial performance. Additionally, factors such as company size and audit committee effectiveness are shown to affect governance outcomes. Beyond financial returns, the study underscores the importance of sustainability, corporate social responsibility, and transparency as essential elements for cultivating investor trust and enhancing corporate reputation. Consequently, implementing sound corporate governance practices is critical not only for improving financial performance but also for fostering responsible and sustainable business operations.