The role of profitability in moderating the factors affecting transfer pricing

This study aims to analyze the influence of tax expense, bonus mechanism, and incentive tunneling on transfer pricing with profitability as moderating. The population is mining companies listed on the Indonesia Stock Exchange in 2016-2019. The sample selection used a purposive sampling technique and obtained 45 analysis units. Data analysis method used moderated regression analysis (MRA). The study showed that tunneling incentive had a significant positive on transfer pricing decision. Tax expense and bonus mechanism had no significant effect on transfer pricing decisions. Profitability strengthened the effect of tax expense on transfer pricing decisions. However, profitability was unable to moderate the influence of bonus mechanism and tunneling incentive towards on transfer pricing decisions. The conclusions are that shareholders the majority of a controlled by the foreign shown to improve the transfer pricing decision. An increase in profitability followed the transfer pricing decision high to reduce tax expense in the company.

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The Effect of Tax Minimization and Exchange Rate on Transfer Pricing Decisions with Leverage as Moderating

Accounting Analysis Journal ◽

10.15294/aaj.v9i2.36469 ◽

2020 ◽

Vol 9 (2) ◽

pp. 110-115

Author(s):

Diah Kumala Devi ◽

Trisni Suryarini

Keyword(s):

Regression Analysis ◽

Exchange Rate ◽

Empirical Evidence ◽

Stock Exchange ◽

Transfer Pricing ◽

Sampling Technique ◽

Descriptive Statistics ◽

Pricing Decisions ◽

Mining Companies ◽

Pricing Decision

The aims of this research are to analyze and to find empirical evidence about the effect of tax minimization and exchange rate on company decision of transfer pricing with leverage as moderating variable. The population of this research was mining companies which listed in Indonesia Stock Exchange (IDX) over the period 2013 to 2018 from 45 companies. The sampling technique used purposive sampling. Eighteen companies were selected with 65 units analysis were obtained. In addition, data was analyzed using descriptive statistics and inferential statistics using Moderated Regression Analysis (MRA). The data was processed by IBM SPSS Statistics 21 software. The results show that tax minimization and exchange rate have positive and significant effect on transfer pricing. Leverage does not moderate the effect of tax minimization on transfer pricing but leverage significantly moderate the effect of exchange rate on transfer pricing. The conclusion of this research is transfer pricing decision will be higher when tax minimization and exchange rate be higher, but leverage can moderate the effect of exchange rate to transfer pricing.

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THE EFFECT OF TAX EXPENSE, BONUS MECHANISM, AND TUNNELING INCENTIVE TOWARDS TRANSFER PRICING DECISION IN COMPANIES WITH PROFITABILITY AS A MODERATING VARIABLE

Media Riset Akuntansi Auditing & Informasi ◽

10.25105/mraai.v21i2.10404 ◽

2021 ◽

Vol 21 (2) ◽

pp. 293

Author(s):

Bonita Bonita ◽

Murtanto Murtanto

Keyword(s):

Multiple Regression ◽

Stock Exchange ◽

Transfer Pricing ◽

Sample Selection ◽

Secondary Data ◽

Observation Data ◽

Regression Equations ◽

Mining Companies ◽

Pricing Decision ◽

Tax Expense

This research aims to obtain empirical evidence about the effect of tax expense, bonus mechanism, and tunneling incentive partially towards transfer pricing decision in companies and the effect of profitability as a moderating variable towards that effect. The data used is secondary data obtained from the annual reports of mining companies companies listed on the Indonesia Stock Exchange 2016 – 2020. The sample selection used is purposive sampling method and the number of mining companies sampled in this research were 14 companies with 70 observation data for 5 years. The data analysis technique used in this study is linear multiple regression equations with Moderated Regression Analysis which is a special application of linear multiple regression equations. The results this research are (1) tax expense has a significant postitive effect towards transfer pricing decision; (2) bonus mechanism has no effect towards transfer pricing decision; (3) tunneling incentive has a significant postitive effect towards transfer pricing decision; (4) profitability moderate (strengthen) the effect of tax expense towards transfer pricing decision; (5) profitability does not moderate (not strengthen nor weaken) the effect of bonus mechanism towards transfer pricing decision; (6) profitability moderate (strengthen) the effect of tunneling incentive towards transfer pricing decision.

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Pengaruh Pajak, Intangible Assets, dan Mekanisme Bonus Terhadap Keputusan Transfer Pricing

Journal of Applied Accounting and Taxation ◽

10.30871/jaat.v5i1.1852 ◽

2020 ◽

Vol 5 (1) ◽

pp. 17-23

Author(s):

Anggun Rizki Novira ◽

Leny Suzan ◽

Ardan Gani Asalam

Keyword(s):

Intangible Assets ◽

Stock Exchange ◽

Transfer Pricing ◽

Sample Selection ◽

Influence Factors ◽

Financial Statement ◽

Pricing Decisions ◽

Pricing Decision ◽

Spss Software ◽

Positive Effect

Transfer pricing is the price for the delivery of goods, services, or other intangible assets at related parties transact with each other based on the arm’s lenght principle. The purpose of this study to examine the influence factors of tax, intangible assets, and bonus mechanism on transfer pricing decisions. The population in this study are mining sector companies listed on the Indonesian Stock Exchange from 2015-2018. Sample selection technique used in purposive sampling and acquired 13 sample companies. The data used in this study was obtained from financial statement. Methods of data analysis in this research in logistic regression analysis using SPSS software version 23. The result showed that simultaneous tax, intangible assets, and bonus mechanism have a significant effect on transfer pricing decision. Tax partially have no significant effect on transfer pricing decision, while intangible assets has a significant positive effect on transfer pricing, and bonus mechanism have no significant effect on transfer pricing decision.

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Analisis Keputusan Transfer Pricing Berdasarkan Pajak, Tunneling dan Exchange Rate

JURNAL AKUNTANSI DAN PAJAK ◽

10.29040/jap.v20i2.756 ◽

2020 ◽

Vol 20 (2) ◽

Author(s):

Hani Sri Mulyani ◽

Endah Prihartini ◽

Dadang Sudirno

Keyword(s):

Exchange Rate ◽

Exchange Rates ◽

Stock Exchange ◽

Transfer Pricing ◽

Tax Burden ◽

Manufacturing Companies ◽

Pricing Decisions ◽

Pricing Decision ◽

The Government ◽

Positive Effect

Tax has two points of view, for the government tax is a source of state revenue that has the largest contribution, but for tax companies is a burden that must be paid. Often companies do tax planning strategies so that the tax burden that must be borne by the company becomes smaller. Companies usually exploit loopholes from the use of accounting methods allowed by accounting and taxation rules. Transfer Pricing is one of the ways companies take to reduce the tax burden. This study aims to determine and obtain empirical evidence about the effect of tax, tunneling and exchange rates on transfer pricing decisions both partially and simultaneously on manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2013-2017 period. The research method used is descriptive and verification analysis method. The population in this study were 144 manufacturing companies listed on the Indonesia Stock Exchange in the period 2013-2017. Sampling using a purposive sampling method and obtained a sample of 20 companies. The results of this study indicate that partially significant positive effect on transfer pricing decisions, tunneling does not significantly influence the transfer pricing and exchange rate decisions do not significantly influence the transfer pricing decision, but simultaneously the results of this study indicate that taxes, tunneling and exchange rates affect significant to the transfer pricing decision.

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TRANSFER PRICING DECISIONS AT MULTINATIONAL COMPANIES IN INDONESIA: TAX EXPENSES, FOREIGN OWNERSHIP, INTANGIBLE ASSETS

JURNAL TERAPAN MANAJEMEN DAN BISNIS ◽

10.26737/jtmb.v6i2.2282 ◽

2020 ◽

Vol 6 (2) ◽

pp. 46

Author(s):

Anggun Budi Utami S Depari ◽

Reza Ramadhan ◽

Amrie Firmansyah

Keyword(s):

Quantitative Methods ◽

Intangible Assets ◽

Stock Exchange ◽

Transfer Pricing ◽

Secondary Data ◽

Sampling Technique ◽

Foreign Ownership ◽

Manufacturing Companies ◽

Pricing Decisions ◽

Final Sample

This study aims to examine the effect of tax expenses, foreign ownership on transfer pricing decisions. This study employs quantitative methods. This study's data type is secondary data from the financial statements of manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019. Data were obtained from the Indonesia Stock Exchange's official website at http: //www.idx.co.id. Sampling was conducted by purposive sampling technique with a final sample of 30 observations. Hypothesis testing is done by multiple regression analysis with panel data. This study concludes that tax expenses and intangible assets are positively associated with transfer pricing decisions, while foreign ownership is not associated with transfer pricing decisions. This study indicates that Indonesia's Tax Authority needs to exercise tighter supervision on MNCs with intangible assets.

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Corporate Governance Compliance in Banking Industry: The Role of the Board

Journal of Open Innovation Technology Market and Complexity ◽

10.3390/joitmc6040137 ◽

2020 ◽

Vol 6 (4) ◽

pp. 137

Author(s):

Rudi Zulfikar ◽

Niki Lukviarman ◽

Djoko Suhardjanto ◽

Tubagus Ismail ◽

Kurniasih Dwi Astuti ◽

...

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Banking Industry ◽

Stock Exchange ◽

Sampling Technique ◽

Analysis Method ◽

The Public ◽

Board Characteristics ◽

Compliance Level

This study seeks to supply empirical evidence for how board characteristics influence corporate governance compliance in the Indonesian banking industry. Corporate governance compliance level represents a company’s actions to fulfill regulatory obligations that aim to protect the public from potential investment losses in the banking industry. This research was conducted by analyzing the influence of board characteristics, specifically how a board of commissioners’ institutions and their instruments affect corporate governance compliance. The entire banking industry, which was listed on the Indonesia Stock Exchange from 2010 to 2015, was employed as the population for this research. Purposive sampling was used as the sampling technique, resulting in 195 observations. To test this study’s hypotheses, multiple regression was applied as the data analysis method. The results revealed that the size of the board of commissioners, the proportion of independent commissioners, the experience of commissioners, and the size of the audit committee were factors that encouraged management in the banking industry to improve their firms’ corporate governance compliance. This indicates that monitoring from the board acts as an effective mechanism for reducing information asymmetry. This research also proves that open innovation following regulations can increase compliance with laws.

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Dewan Komisaris Independen dan Komite Audit sebagai Faktor yang Menentukan Kinerja Keuangan Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2013-2017

JURNAL PUNDI ◽

10.31575/jp.v4i1.220 ◽

2020 ◽

Vol 4 (1) ◽

Author(s):

Aminar Sutra Dewi ◽

Ronal Trio Fernando

Keyword(s):

Regression Analysis ◽

Financial Performance ◽

Audit Committee ◽

Stock Exchange ◽

Sampling Technique ◽

Financial Statements ◽

Audit Committees ◽

Analysis Method ◽

Financial Reports

The purpose of this study is to discover the role of independent commissioners and audit committees to improve financial performance both simultaneously and in part. The paper objects used were all companies listed on the Indonesia Stock Exchange from 2013 to 2017, using a purposive sampling technique. Data on the company's annual financial statements and annual financial reports are obtained from the official website of the IDX. This paper was added in the study. The data analysis method used in this update is regression analysis in the data panel. This study uses the transition from Good Corporate Gorvernance, an independent board of commissioners and an audit board as an audit measure in this study. The results showed that the simultaneous independent board of commissioners had a significant effect on financial performance (ROA, ROE). The audit committee has a negative and not significant effect on financial performance (ROA, ROE).

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Determinants of Transfer Pricing Decisions in Mining Companies Listed on the Indonesian Stock Exchange

Jurnal Economia ◽

10.21831/economia.v17i2.33818 ◽

2021 ◽

Vol 17 (2) ◽

pp. 151-161

Author(s):

Ade Maya Saraswati

Keyword(s):

Corporate Governance ◽

Stock Exchange ◽

Transfer Pricing ◽

Research Result ◽

Sampling Technique ◽

Purposive Sampling ◽

Pricing Decisions ◽

Mining Companies ◽

Good Corporate Governance ◽

Positive Effect

Abstract: This research aims to analyse the effect of tax and tunnelling incentive to transfer pricing with good corporate governance as a moderating variable. This research focuses on all mining companies listed on the Indonesian Stock Exchange in the period from 2014-2018 by using the purposive sampling technique to determine the sample. There are 90 data observations used as the sample and analysed by using logistic regression and moderation regression analysis, with the help of the SPSS 20 program. The research result shows that tax has a positive effect on the decision of transfer pricing; tunnelling incentive does not have an effect on the decision of transfer pricing. Good corporate governance moderates the effect of tax to transfer pricing, meanwhile good corporate governance does not moderate the effect of tunnelling incentive to the decision of transfer pricing. Keywords: Good corporate governance; Tax; Transfer pricing; Tunnelling incentive Determinan Keputusan Transfer Pricing pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek IndonesiaAbstrak: Penelitian ini bertujuan untuk menganalisis pengaruh pajak dan tunnelling incentive terhadap transfer pricing dengan good corporate governance sebagai variabel pemoderasi. Populasi dari penelitian ini adalah seluruh perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia tahun 2014-2018 dengan penentuan sampel menggunakan teknik purposive sampling. Sampel dalam penelitian berjumlah 90 observasi data yang kemudian dianalisis menggunakan regresi logistik dan analisis regresi moderasi dengan bantuan program SPSS 20. Hasil penelitian menunjukkan bahwa pajak berpengaruh positif terhadap keputusan transfer pricing, tunneling incentive tidak berpengaruh terhadap keputusan transfer pricing, good corporate governance memoderasi pengaruh pajak terhadap transfer pricing, sedangkan good corporate governance tidak memoderasi pengaruh tunnelling incentive terhadap keputusan transfer pricing.Kata kunci: Good corporate governance; Pajak, Transfer pricing, Tunnelling incentive

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HUBUNGAN ANTARA TUNNELING INCENTIVE, BONUS MECHANISM DAN DEBT CONVENANT TERHADAP KEPUTUSAN TRANSFER PRICING DENGAN TAX MINIMIZATION SEBAGAI PEMODERASI

Jurnal Akuntansi Trisakti ◽

10.25105/jat.v8i1.8682 ◽

2021 ◽

Vol 8 (1) ◽

pp. 23

Author(s):

Titik Aryati ◽

Cicely Delfina Harahap

Keyword(s):

Sampling Method ◽

Stock Exchange ◽

Transfer Pricing ◽

Observation Data ◽

Manufacturing Companies ◽

Analysis Method ◽

Result Show ◽

Debt Covenant ◽

Transaction Tax

The objective of this research was to examine the effect of tunneling incentive, bonus mechanism and debt covenant to transfer pricing. This research also conducted to test the role of tax minimization in moderating the relation between those variables. Research sample was manufacturing companies in consumer goods sector, that registered in Indonesia Stock Exchange 2014-2018. This research use purposive sampling method, with 110 observation data. Analysis method used is multiple linear regression. The result show only Debt covenant that proved can increase firm in transfer pricing. This research was not able to prove tunneling incentive and bonus mechanism influenced the decision of transfer pricing transaction. Tax minimization is not proved moderating the relations between tunneling incentive, bonus mechanism, and debt covenant to transfer pricing transactions.

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Transfer pricing decision: Manufacturing companies with special transaction on the Indonesian stock exchange

STUDIES AND SCIENTIFIC RESEARCHES ECONOMICS EDITION ◽

10.29358/sceco.v0i32.474 ◽

2020 ◽

Author(s):

Anny Widiasmara ◽

Ika Purwaningsih

Keyword(s):

Financial Reporting ◽

Intangible Assets ◽

Stock Exchange ◽

Transfer Pricing ◽

Sample Selection ◽

Secondary Data ◽

Income Shifting ◽

Manufacturing Companies ◽

Pricing Decisions ◽

Analysis Technique

The purpose of this study is to provide empirical evidence on the influence of taxes, tunneling incentives for income shifting, financial reporting and intangible assets on transfer pricing decisions. The data used is secondary data in the form of annual financial statements downloaded from the official website of IDX www.idx.co.id. The population of this study is a manufacturing company registered in IDX for the period 2016-2018. Sample selection technique using purposive sampling method so that 33 companies are obtained according to the criteria. The analysis technique uses multiple linear regressions tested with SPSS version 20 applications. The results showed that taxes, tunneling incentives for income shifting, and financial reporting had no effect on transfer pricing decisions. Meanwhile, intangible assets have a significant positive effect on transfer pricing decisions.

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