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Herianti , E., & Chairina , S. W. (2019). Does Transfer Pricing Improve the Tax Avoidance through Financial Reporting Aggressiveness? . KnE Social Sciences, 3(26), 357–376. https://doi.org/10.18502/kss.v3i26.5387

https://doi.org/10.18502/kss.v3i26.5387

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authors

  • Eva Herianti

    Eva Herianti

    Department of Management, Faculty of Economics and Business, Universitas Muhammadiyah Jakarta, Indonesia
  • Septi Wulandari Chairina

    Septi Wulandari Chairina

    Department of Management, Faculty of Economics and Business, Universitas Muhammadiyah Jakarta, Indonesia

Published Date

  • Oct 17, 2019

Does Transfer Pricing Improve the Tax Avoidance through Financial Reporting Aggressiveness?

KnE Social Sciences / International Conference on Economics, Management, and Accounting (ICEMA) / Pages 357–376

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.

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