The Influences of Tax, Bonus Mechanism, Leverage and Company Size Through Company Decision on Transfer Pricing

DOI

10.2991/aicar-18.2019.45How to use a DOI?

Keywords

tax; bonus mechanism; foreign ownership; leverage; company size; transfer pricing

Abstract

Transfer pricing is pricing or reward connecting with interrelated goods transfer, services or technology shift between companies has different relation and systemic price manipulation to reduce artificial profits, it pretended as if the enterprise loses, avoids taxes and customs in a country. This study conducted to determine the effect of taxes, on manufacturing companies listed on the Indonesia Stock Exchange 2012-2015. The sample is determined based on purposive sampling method toward manufacturing companies listing in Indonesia Stock Exchange period 2013-2015 and found 30 samples of company so total observation in this research is 120 observations. The data used in this study are secondary data in the form of financial statements and annual reports downloaded through the official website IDX: www.idx.co.id. Data were analysed using regression and analysis of panel data processed using Eviews software version 8.0. The Hypothesis testing is using t- test statistical. The results are obtained foreign ownership, leverage and firm size, they have positive and significant influence on transfer pricing. Tax variables have positive and insignificant effect on transfer pricing while the bonus mechanism variable shows negative and not significant to transfer pricing.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Sulistyowati
AU  - Sulistyowati Kananto
PY  - 2019/02
DA  - 2019/02
TI  - The Influences of Tax, Bonus Mechanism, Leverage and Company Size Through Company Decision on Transfer Pricing
BT  - Proceedings of the 5th Annual International Conference on Accounting Research (AICAR 2018)
PB  - Atlantis Press
SP  - 207
EP  - 212
SN  - 2352-5428
UR  - https://doi.org/10.2991/aicar-18.2019.45
DO  - 10.2991/aicar-18.2019.45
ID  - 2019/02
ER  -