DETERMINANTS OF PROPERTY FIRM VALUE: GOVERNMENT-BORNE VALUE-ADDED TAX MODERATION

Abstract

This study investigates the influence of financial performance, firm size, and sales growth on the valuation of listed property companies in Indonesia, and examines the moderating effect of the Government-Borne Value Added Tax policy. Employing a quantitative approach with panel data regression under a Fixed Effect Model, observation data across selected property developers listed on the Indonesia Stock Exchange were analyzed. Tax policy is operationalized as a binary dummy variable distinguishing policy implementation periods from non-policy periods. Empirical findings reveal that internal financial performance is a primary positive driver of market valuation, reinforcing the view that profitability reflects operational efficiency and sound capital deployment. Conversely, firm size and sales growth exert counterintuitive negative impacts on firm value. Under an accrual accounting framework, rapid expansion and large asset footprints translate into receivables-based sales and high landbank carrying costs rather than cash inflows, drawing negative market responses. Notably, fiscal stimulus fails to moderate the relationship between profitability and firm value, indicating external tax relief cannot substitute for structural earnings quality. However, policy effectively moderates the adverse effects of firm size and top-line growth by accelerating inventory absorption and converting completed units into cash flows.