PROFITABILITY INTERVENING DETERMINANT TRANSFER PRICING IN TECHNOLOGY SECTOR COMPANIES INDONESIA
Main Article Content
Eka Puji Sri Rahayu
Alia Sukma Setiawati
Selly Buana Ramadiani
Mohamad Zulman Hakim
Hustna Dara Sarra
Sri Yanto
This study evaluates the influence of tax burden, leverage, and company size on transfer pricing decisions with profitability as an intervening variable, using data from technology companies listed on the Indonesia Stock Exchange for the 2021-2023 period. Data analysis was carried out using the panel data regression method and using the Random Effect Model (REM) model. The results showed that the tax burden and company size had a significant positive effect on transfer pricing decisions, while leverage did not show a significant effect. Profitability was shown to mediate the relationship of leverage and company size to transfer pricing, but did not mediate the effect of tax burden. These findings underscore that large and profitable companies tend to utilize transfer pricing as a strategy to reduce their tax burden.
Deanti, N. (2017). Pengaruh Profitabilitas terhadap Transfer Pricing melalui Efisiensi Pajak. Jurnal Akuntansi Multiparadigma, 8(2), 237–250.
Dyah Ayu Mawar Sari, Chaidir Djohar. 2022. "The Effect of Profitability, Debt Covenant and Bonus Mechanism on Transfer Pricing (Empirical Study on Raw Goods Companies on the IDX for the 2016-2020 Period)". Journal. South Tangerang: Pamulang University.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Laksmita Rachmah Deanti. 2017. "The Influence of Taxes, Intangible Assets, Leverage, Profitability, and Tunneling Incentives on Transfer Pricing Decisions of Indonesian Multinational Companies". Thesis. Jakarta: Syarif Hidayatullah State Islamic University.
Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: A correction. The American Economic Review, 53(3), 433–443.
Naadhiya Ulfa Aurinda. 2018. "Analysis of Factors Influencing a Company's Decision to Conduct Transfer Pricing". Thesis. Bandar Lampung: University of Lampung.
Nurul Baiti, Isitaningsih, Sastrodiharjo, Gilbert Rely. 2024. "The Effect of Profitability and Leverage Tax Burden on Transfer Pricing Decisions with Bonus Mechanism as an Intervening Variable". Journal. Greater Jakarta: Bhayangkara University
OECD. (2022). OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022. OECD Publishing.
Rego, S. O. (2003). Tax-avoidance activities of U.S. multinational corporations. Contemporary Accounting Research, 20(4), 805–833.
Richardson, G., & Lanis, R. (2007). Determinants of the variability in corporate effective tax rates and tax reform: Evidence from Australia. Journal of Accounting and Public Policy, 26(6), 689–704.
Richardson, G., Taylor, G., & Lanis, R. (2013). The impact of board of director oversight characteristics on corporate tax aggressiveness: An empirical analysis. Journal of Accounting and Public Policy, 32(3), 68–88.
Watts, R. L., & Zimmerman, J. L. (1986). Positive Accounting Theory. Prentice Hall
