Factors That Influence Companies to Transfer Pricing

DOI

10.2991/aebmr.k.200520.063How to use a DOI?

Keywords

debt covenant, exchange rate, tax, transfer pricing

Abstract

Nowadays transfer pricing decisions can affect the company’s profit and loss. Division managers or subsidiaries are usually involved in transfer pricing decisions, they have control over overall profitability. By manipulating transfer pricing, the company has also manipulated revenue / cost of goods sold under the anti-division division or subsidiary. Exchange rates are measured by the difference in foreign exchange gains / losses against profit / loss before tax. This research was conducted on all manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2013 - 201 8. This study was a descriptive quantitative research that reveals the size of an influence between the variables are expressed in numbers. This research was conducted to reveal the size of the effect of taxes, debt covenants, and exchange rates on the company’s decision to apply transfer pricing. From the results of data analysis obtained through this study, we can find out that there are three independent variables (tax, debt covenant, and exchange rate ) that significantly influence the dependent variable ( transfer pricing ), both in positive and negative.

Copyright

© 2020, 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  - Rina Tjandrakirana
AU  - Ermadiani
PY  - 2020
DA  - 2020/05/23
TI  - Factors That Influence Companies to Transfer Pricing
BT  - Proceedings of the 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019)
PB  - Atlantis Press
SP  - 376
EP  - 384
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200520.063
DO  - 10.2991/aebmr.k.200520.063
ID  - Tjandrakirana2020
ER  -