Determinants of Transfer Pricing Aggressiveness with the Moderation of Corporate Governance in Indonesia and Malaysia
PDF
PDF

Keywords

Transfer Pricing Aggressiveness
Multinational Firms
Indonesia
Malaysia

How to Cite

Wahyudi, D. E., T, S., & Rusydi, M. K. (2021). Determinants of Transfer Pricing Aggressiveness with the Moderation of Corporate Governance in Indonesia and Malaysia. Journal of Economics, Business, and Accountancy Ventura, 24(1), 23-33. https://doi.org/10.14414/jebav.v24i1.2536
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Abstract

This research aims to analyze and empirically prove the effects of firm size, profitability, and leverage on transfer pricing aggressiveness moderated by corporate governance. It used a sample consisting of 73 multinational firms listed in both www.idx.co.id and www.bursamalaysia.com from 2018 to 2019. The data were analyzed using multiple linier regression and moderated regression analysis (MRA) to analyze and empirically prove the effects of firm size, profitability, and leverage on transfer pricing aggressiveness moderated by corporate governance. The results showed that leverage positively affected transfer pricing aggressiveness, whereas firm size and profitability did not. Corporate governance evidently weakened the effect of leverage on transfer pricing aggressiveness. This research contributes to increasingthe state revenue through the taxation sector by exposing the determinants of transfer pricing aggressiveness that harm the state, and to assist public policy makers, especially those who are in charge of the policies related to transactions with special relationship.

References

Aditya, K. L. S. (2015). Analysis of transfer pricing as a tax avoidance and proposed suggestion to prevent its disadvantages. Yuridika, 30(1), 137–150.

Anh, N. H., Hieu, N. T., & Nga, D. T. (2018). Determinants of Transfer Pricing Aggresiveness: A Case of Vietnam. South East Asia Journal of Contemporary Business, Economics and Law, 16(5), 104–112.

Annisa, N. A., & Kurniasih, L. (2012). Pengaruh Corporate Governance Terhadap Tax Avoidance. Jurnal Akuntansi Dan Auditing, 8, 123–136. https://doi.org/https://doi.org/10.14710/jaa.8.2.123-136

Barker, J., Asare, K., & Brickman, S. (2017). Transfer Pricing as a Vehicle in Corporate Tax Avoidance. Journal of Applied Business Research, 33(1), 9–16. https://doi.org/https://doi.org/10.19030/jabr.v33i1.9863

Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research. Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173