The Effect of Bonus Mechanisms, Good Corporate Governance on Transfer Princing with Tax Avoidance as Moderating

Abstract

The purpose of this study is to examine the effect of the bonus mechanism, good corporate governance on transfer pricing with tax avoidance as a moderating variable. The research method used is quantitative with data collection through the official website of the Indonesian Stock Exchange (IDX) or the Indonesian Stock Exchange (IDX). The sampling method used is purposive sampling in which the determination of the sample is based on certain criteria. The results of the sample obtained were 10 companies in the food and beverage sub-sector listed on the Indonesian stock exchange in 2016 – 2020. The results of the test hypothesis prove that the bonus mechanism has no effect on transfer pricing. The board of directors has no effect on transfer pricing. Independent commissioners have an effect on transfer pricing. Institutional ownership has no effect on transfer pricing. the audit committee has no effect on transfer pricing. Tax avoidance has no effect on transfer pricing. Tax Avoidance cannot Moderate the effect of the bonus mechanism on transfer pricing. Tax Avoidance cannot Moderate the influence of the board of directors on transfer pricing. Tax Avoidance cannot Moderate the influence of independent commissioners on transfer pricing. Tax Avoidance can Moderate the effect of institutional ownership on transfer pricing. Tax Avoidance cannot Moderate the influence of the audit committee on transfer pricing.