Tax expense and bonus mechanism on transfer pricing
G.S. Manda, H.M. Zakaria & A. Rakhman

Universitas Singaperbangsa Karawang

Abstract

The aim of this research is to examine the influence of tax expense and bonus mechanism on transfer pricing with using sample manufacturing company at LQ 45 period 2012-2016. The variables of this research consisted of two independent variables and one dependent variable. The first independent variable is tax expense, the second independent variable is bonus plan, and transfer pricing is dependent variable. The research is quantitative methods and analysis techniques of this research is using logistic regression analysis. This is because the dependent variable in this reasearch is dummy variable, the companies which is using transfer pricing is coded by 1 and the companies which is not using transfer pricing is coded by 0. This reasearch uses financial statements as a data source. The results of the research showed tax expense and bonus plan do not have influence on transfer pricing on manufacturing company at LQ 45 period 2012-2016

Keywords: Manufacturing, LQ 45, Tax expense, Bonus plan, Transfer Pricing

Topic: Financial Management and Accounting