Does Transfer Pricing Improve the Tax Avoidance through Financial Reporting Aggressiveness?
Year: 2019
Type: article
Abstract: The purpose of this study is to test and analyze the effect of transfer pricing on tax avoidance with aggressiveness of financial reporting as mediating variable. The study sample used a manufacturing company listed on the Indonesia Stock Exchange (IDX) for the period 2013-2017 with a sampling technique using purposive sampling, so that the number of final samples obtained was 305 sample observations. This study uses a panel data approach to test the research hypothesis with eviews version 10. The results show that transfer pricing has a positive and significant effect on tax avoidance and the financial reporting aggressiveness, financial reporting aggressiveness has a positiveandsignificanteffectontaxavoidance,andfinancialreportingaggressiveness can positively mediate the effect of transfer pricing on tax avoidance.
Source: KnE Social Sciences
Authors: Eva Herianti, Septi Wulandari Chairina
Institution: Universitas Muhammadiyah Jakarta
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W2980907720