iarjbmIARJBMIARJBM2708-5147https://doi.org/10.47310/iarjbm.2021.v02i02.010Tax Avoidance and Firm Value: A Two-Stage Regression AnalysisWangJui-ChihDepartment of Accounting Information, National Taipei University of Business, TaiwanEnterprises engaged in tax avoidance activities, the purpose of which is either paying less tax or deferring tax payment. Therefore, the purpose of this study is to investigate the relationship between tax avoidance and firm value. This study used public listed companies on the Taiwan Stock Exchange over the period 2010-2017, based on empirical regression analysis to study the effects of tax avoidance behavior on firm value and measured with effective tax rates as tax avoidance measures. The empirical results show that corporate tax avoidance will be reflected in the reduction of the Effective Tax Rates (ETR) and the expanding of the book-tax differences (ETR), which will have a significant negative impact on the value of the enterprise, that is, the reduction of the effective tax rate enables the enterprise to pay less tax and raise the firm value. Moreover, when the financial income of enterprises is greater than the income from taxation, the higher the degree of corporate tax avoidance, the higher the enterprise value.