Tax Minimization Moderates The Influence Of Profitability, Tunneling Incentive And Debt Covenant On Transfer Pricing
Keywords:
Profitability, Tunneling Incentive, Debt Covenant, Transfer Pricing, Tax MinimizationAbstract
The aim of this research is to determine the factors that influence transfer pricing in small companies listed on the Indonesia Stock Exchange (IDX). This research is a quantitative study, with a sample of 46 annual reports of mining companies listed on the Indonesia Stock Exchange (IDX) and obtained through purposive sampling technique. The analysis technique used in this study is multiple linear regression and moderated regression analysis (MRA). The results of this study indicate that profitability and debt covenants have no effect on transfer pricing, tunneling incentives have a significant positive effect on transfer pricing. Tax minimization is not able to moderate profitability, tunneling incentives, and debt covenants to transfer pricing. This study specifically explains how the effect of profitability, tunneling incentives, and debt covenants on transfer pricing. The following is the effect of tax minimization as a moderator of profitability variables, tunneling incentives, and debt covenants on transfer pricing, so the results of this study are expected to contribute as considerations for investors and the public regarding the transfer pricing practices of multinational companies that still occurs in Indonesia. This research is only limited to mining companies listed on the Indonesia Stock Exchange (IDX) so that further researchers are advised to extend the study period and expand the research population.
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Copyright (c) 2024 Fany Dewi Irma Purba, Dirvi Surya Abbas (Author)
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Simposium Ilmiah Akuntansi under the terms of a Creative Commons Attribution 4.0 International License / CC BY 4.0 This license permits anyone to copy and redistribute this material in any form or format, compose, modify, and make derivative works of this material for any purpose, including commercial purposes, so long as they include credit to the Author of the original work.
