Proceedings of the International Conference on Applied Science and Technology on Social Science 2023 (iCAST-SS 2023)

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Financial and Non-Financial Factors in Transfer Pricing Decisions

Authors
Siti Nafisah Azis1, *, Nuraisyah Zain Mide1, Andi Muhammad Radhi Isyat1, Gabriella Timang Langi1
1Department of Accounting, Ujung Pandang State Polytechnic, Makassar, Indonesia
*Corresponding author. Email: sitinafisah@poliupg.ac.id
Corresponding Author
Siti Nafisah Azis
Available Online 15 February 2024.
DOI
10.2991/978-2-38476-202-6_100How to use a DOI?
Keywords
transfer pricing; tax haven; bonus plan; good corporate governance
Abstract

This study aims to examine the influence of financial factors consisting of debt covenant and bonus plan and non-financial factors consisting of tax haven, good corporate governance (independent commissioners, board of directors, and audit committee), and foreign ownership on the decision of transfer pricing. The population of this study were all manufacturing companies listed on the Indonesia Stock Exchange. The sampling method used was purposive sampling, so that the sample obtained was 67 companies or 268 observations. The data used are secondary data obtained from financial statements, annual reports, and tax haven index reports. The results of this study indicate that tax haven, board of directors, and foreign ownership have a significant influence on the transfer pricing decisions. Debt covenant, bonus plan, independent commissioner, and audit committee do not have a significant influence on transfer pricing decisions. This provides evidence that non-financial factors affect the transfer pricing decisions in manufacturing companies listed on the IDX. This research contributes to policy makers by including non-financial factors in transfer pricing policy and to the development of management accounting science related to transfer pricing in multinational transactions.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Applied Science and Technology on Social Science 2023 (iCAST-SS 2023)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
15 February 2024
ISBN
978-2-38476-202-6
ISSN
2352-5398
DOI
10.2991/978-2-38476-202-6_100How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Siti Nafisah Azis
AU  - Nuraisyah Zain Mide
AU  - Andi Muhammad Radhi Isyat
AU  - Gabriella Timang Langi
PY  - 2024
DA  - 2024/02/15
TI  - Financial and Non-Financial Factors in Transfer Pricing Decisions
BT  - Proceedings of the International Conference on Applied Science and Technology on Social Science 2023 (iCAST-SS 2023)
PB  - Atlantis Press
SP  - 732
EP  - 740
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-202-6_100
DO  - 10.2991/978-2-38476-202-6_100
ID  - Azis2024
ER  -