The Effect of Tax Avoidance on Investment Efficiency: The Role of CFO Certification as Moderating Variable

Seftia Riyani
Adhitya Putri Pratiwi (Universitas Pamulang)

Jurnal Akuntansi dan Perpajakan
Vol. 12 No. 1 (2026): Maret 2026

Investment efficiency reflects the extent to which a company is able to optimally allocate its resources to profitable projects that create added value; however, this efficiency can be disrupted when management engages in tax avoidance practices that create information asymmetry and divert resources from optimal investment decisions. This study aims to examine the effect of tax avoidance on investment efficiency, as well as to test whether the presence of a certified chief financial officer (CFO) is able to weaken that relationship in energy sector companies listed on the Indonesia Stock Exchange during the 2020–2024 period. Unlike prior studies that have largely examined tax avoidance and investment efficiency as a direct relationship, this study incorporates CFO certification as a moderating variable, thereby offering new insight into the role of professional certification as a monitoring mechanism. This study employs a quantitative associat Investment efficiency reflects the extent to which a company is able to optimally allocate its resources to profitable projects that create added value; however, this efficiency can be disrupted when management engages in tax avoidance practices that create information asymmetry and divert resources from optimal investment decisions. This study aims to examine the effect of tax avoidance on investment efficiency, as well as to test whether the presence of a certified chief financial officer (CFO) is able to weaken that relationship in energy sector companies listed on the Indonesia Stock Exchange during the 2020–2024 period. Unlike prior studies that have largely examined tax avoidance and investment efficiency as a direct relationship, this study incorporates CFO certification as a moderating variable, thereby offering new insight into the role of professional certification as a monitoring mechanism. This study employs a quantitative associative approach with a population of 91 companies. The sample was selected through purposive sampling, resulting in 17 companies with a total of 85 observations over five years of observation. Data were analyzed using panel data regression and Moderated Regression Analysis (MRA) with the assistance of EViews 13 software. The results show that tax avoidance has a significant effect on investment efficiency, while chief financial officer (CFO) certification does not moderate the relationship between tax avoidance and investment efficiency. This indicates that chief financial officer (CFO) certification has not been able to weaken the relationship between tax avoidance and investment efficiency in energy sector companies in Indonesia during the observation period. ive approach with a population of 91 companies. The sample was selected through purposive sampling, resulting in 17 companies with a total of 85 observations over five years of observation. Data were analyzed using panel data regression and Moderated Regression Analysis (MRA) with the assistance of EViews 13 software. The results show that tax avoidance has a significant effect on investment efficiency, while chief financial officer (CFO) certification does not moderate the relationship between tax avoidance and investment efficiency. This indicates that chief financial officer (CFO) certification has not been able to weaken the relationship between tax avoidance and investment efficiency in energy sector companies in Indonesia during the observation period.