THE INFLUENCE OF TAX EXPENSE AND PROFITABILITY ON TRANSFER PRICING IN MANUFACTURING COMPANIES IN THE CONSUMER GOODS INDUSTRY SECTOR LISTED ON THE INDONESIA STOCK EXCHANGE FROM 2016 TO 2020

Authors

  • Anselmus Rufus Kodu Institut Bisnis Indonesia Kwik Kian Gie
  • Rimi Gusliana Mais Sekolah Tinggi Ilmu Ekonomi Indonesia Jakarta

DOI:

https://doi.org/10.53625/ijss.v4i2.8322

Keywords:

Transfer Pricing, Tax Expense, Profitability, Manufacturing Industry

Abstract

This study aims to investigate the influence of tax expense and profitability on transfer pricing decisions in manufacturing companies within the consumer goods industry sector listed on the Indonesia Stock Exchange during the period 2016-2020. Utilizing a quantitative approach and secondary data from annual financial reports, multiple linear regression analysis was conducted to assess the relationship between independent variables (tax expense and profitability) and the dependent variable (transfer pricing). The results indicate that both tax expense and profitability significantly impact firms' transfer pricing decisions. Companies tend to actively employ transfer pricing strategies when faced with high tax expenses and achieve good profitability levels. The implications of this research emphasize the importance of effective transfer pricing management in optimizing tax structures and financial performance, as well as the necessity for clear regulations to ensure compliance and transparency in business practices. This study provides valuable insights for practitioners, academics, and policymakers in comprehending the complexities of transfer pricing within the context of manufacturing companies, while also suggesting further research into more advanced measurement methods related to transfer pricing

References

Martasari. (2015). Pengaruh Karakteristik Keuangan Dan Nonkeuangan Terhadap Transfer Pricing Pada Perusahaan Di Indonesia. Universitas Diponegoro.

Cahyadi, A. S., & Noviari, N. (2018). Pengaruh Pajak, Exchange Rate, Profitabilitas, Dan Leverage Pada Keputusan Melakukan Transfer Pricing. E-Jurnal Akuntansi Universitas Udayana, 24, 1441–1473.

Mispiyanti. (2015). Pengaruh Pajak, Tunelling Incentive dan Mekanisme Bonus terhadap keputusan Transfer Pricing. Jurnal Akuntansi dan Investasi, 16(1), 62-73.

Olivia. (2019). Pengaruh Beban Pajak, Profitabilitas dan Kepemilikan Asing dengan Tax Haven sebagai variabel moderasi terhadap kebijakan perusahaan melakukan Transfer Pricing. Institut Bisnis dan Informatika Kwik Kian Gie, Jakarta.

Thesa Refgia. (2017). Pengaruh Pajak, Mekanisme Bonus, Ukuran Perusahaan, Kepemilikan Asing dan Tunelling Incentive terhadap Transfer Pricing. Universitas Riau.

Gusti Saraswati, IK Sujana. (2017). Pengaruh Pajak, Mekanisme Bonus, dan Tunneling Incentive pada indikasi melakukan Transfer Pricing. Universitas Udayana.

Kodu, A. R., Saragih, K., Sitorus, F., & Silvanita, K. (2023). The Influence of Internal Control, User Capability and Information Technology on the Quality of the Accounting Information System at PT VK. International Journal of Research and Innovation in Social Science, 7(12), 175-182. Retrieved from International Journal of Research and Innovation in Social Science (IJRISS).

Kodu, A. R. (2022). Pengaruh Pengendalian Internal, Kemampuan Pengguna, dan Teknologi Informasi terhadap Kualitas Sistem Informasi Akuntansi pada PT Virama Karya (Persero). Universitas Kristen Indonesia.

Mais, R. G., & Hastuti, D. D. (2023). Profitability and zakat payment: The role of firm size. Jurnal Riset Manajemen dan Bisnis, 8(1), 33-40.

Musfiroh, S., Herdiyatna, H., Saritah, S., Mais, R. G., & Sunarsih, U. (2024). Pengaruh profitabilitas, ukuran perusahaan dan analisis good corporate governance terhadap tax avoidance. Jurnal Riset Ekonomi dan Manajemen, 15(6), 1-15.

Downloads

Published

2024-08-06

How to Cite

Anselmus Rufus Kodu, & Rimi Gusliana Mais. (2024). THE INFLUENCE OF TAX EXPENSE AND PROFITABILITY ON TRANSFER PRICING IN MANUFACTURING COMPANIES IN THE CONSUMER GOODS INDUSTRY SECTOR LISTED ON THE INDONESIA STOCK EXCHANGE FROM 2016 TO 2020. International Journal of Social Science, 4(2), 187–190. https://doi.org/10.53625/ijss.v4i2.8322

Issue

Section

Articles