Published date: Oct 17 2019

Journal Title: KnE Social Sciences

Issue title: International Conference on Economics, Management, and Accounting (ICEMA)

Pages: 357–376

DOI: 10.18502/kss.v3i26.5387

Eva Herianti heriantieva@gmail.comDepartment of Management, Faculty of Economics and Business, Universitas Muhammadiyah Jakarta, Indonesia

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

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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