The Influence of Transfer Pricing and Management Compensation Toward Tax Avoidance of Food and Beverage Companies Listed on the Indonesia Stock Exchange
Abstract
Food and beverage industry has been a major player in Indonesia economic, constituting up to 6% of Indonesia GDP. This lead companies involved in the sector to expand from national to multinational companies. In the previous research, transfer pricing and CEO compensation were observed partially in relation to the tax aggressiveness while this research focuses on transfer pricing and management compensation partially and simultaneously toward the tax avoidance.
The purpose of this research is to observe the influence of transfer pricing and management compensation toward tax avoidance of food and beverage companies listed on Indonesia Stock Exchange (IDX) from 2020 to 2022. There are two independent variables used in this research, such as transfer pricing and management compensation. The dependent variable of this research is tax avoidance. There are 12 samples out of 122 companies that were chosen in this quantitative research utilizing purposive sampling technique and secondary data collection method.
The result of this research shows that transfer pricing has a non-significant influence towards tax avoidance and management compensation has a non-significant influence towards tax avoidance. Furthermore, transfer pricing and management compensation simultaneously have a significant influence towards tax avoidance.
Keywords: Tax Avoidance, Transfer Pricing, Management Compensation
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
1) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC-BY-SA 4.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
2) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
3) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website). The final published PDF should be used and bibliographic details that credit the publication in this journal should be included.
