Pengambilan Keputusan Struktur Modal Melalui Perbedaan Penilaian Tax Shield

Capital structure decision-making is very important for a company to finance its business continuity. There are two main sources of capital that have always been and are still being debated by economists and ongoing research, namely financing from debt or equity. More than two decades later, researchers are still debating the theory of capital structure in the MM model and providing criticism, suggestions, and different research results. Among other things, the most closely related to the influence of capital structure decision-making is the Taz Shield assessment. However, the tax shield cannot arbitrarily become the main basis for a company's decisions on its capital structure. This is due to the many other factors that can affect the assessment of the tax shield, which can vary and can be utilized by companies to make their competitiveness stronger and their company value increase. Errors in assessing the tax shield can lead to capital structure decisions that are not in accordance with the expectations of stakeholders