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The Influence of Tax, Foreign Ownership and Company Size on the Application of Transfer Pricing in Manufacturing Companies Listed on IDX during 2013-2017

Author

Listed:
  • Aida Yulia

    (Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia)

  • Nurul Hayati

    (Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia)

  • Rulfah M. Daud

    (Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia)

Abstract

The objective of this research is to examine the effects of tax, foreign iownership, and firm size on the application of transferi pricing in the manufacturing companies listed on Indonesia Stock Exchange during 2013-2017. This study is hypothesis-testing research by using purposive sampling method with a total of 110 samples of data. Secondary data in the form of financial statements with the year ended 31 December were obtained from the Indonesia Stock Exchange. Logistic regression was used to test the hypotheses. The results of thisi research show that tax, foreign ownership, andi firm size simultaneously influences the application of transfer pricing. Meanwhile partially tax was found to significantly influence the application of transfer pricing. In addition foreign ownership and firm sizei does not influence the application of transfer pricing.

Suggested Citation

  • Aida Yulia & Nurul Hayati & Rulfah M. Daud, 2019. "The Influence of Tax, Foreign Ownership and Company Size on the Application of Transfer Pricing in Manufacturing Companies Listed on IDX during 2013-2017," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 175-181.
    • Handle: RePEc:eco:journ1:2019-03-16
    as

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    References listed on IDEAS

    as
    1. Lambert, Richard A., 2001. "Contracting theory and accounting," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 3-87, December.
    2. Richardson, Grant & Taylor, Grantley & Lanis, Roman, 2013. "Determinants of transfer pricing aggressiveness: Empirical evidence from Australian firms," Journal of Contemporary Accounting and Economics, Elsevier, vol. 9(2), pages 136-150.
    3. Marfuah Marfuah & Andri Puren Noor Azizah, 2014. "Pengaruh Pajak, Tunneling Incentive Dan Exchange Rate Pada Keputusan Transfer Pricing Perusahaan," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 18(2), pages 156-165, Desember.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
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    More about this item

    Keywords

    s Transfer pricing; Tax; Foreign ownership; Firm size.;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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