The  Influence of Profit Management, Transfer Pricing, and Capital Intensity on Tax Avoidance with Company Size as a Moderation Variable

Riri  Fitriani; Muhamad  Taqi

doi:10.58968/iem.v3i1.542

Authors

Riri Fitriani Faculty of Economics and Business, Sultan Ageng Tirtayasa University, Indonesia
Muhamad Taqi Faculty of Economics and Business, Sultan Ageng Tirtayasa University, Indonesia

DOI:

https://doi.org/10.58968/iem.v3i1.542

Keywords:

Profit Management, Transfer Pricing, Capital Intensity, Tax Avoidance, Company Size

Abstract

This research aims to determine the effect of earnings management, transfer pricing, and capital intensity on tax avoidance with company size as a moderating variable. The research objects used in this research are manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2018-2023. This research is a type of quantitative research with multiple linear regression models and Moderated Regression Analysis (MRA). In selecting samples that met the criteria, 30 companies were obtained. This research uses secondary data based on manufacturing company financial reports obtained from the Indonesia Stock Exchange website and related company websites. Data processing was carried out using the SPSS 25 application program. Partial research results showed that earnings management had an effect on tax avoidance, transfer pricing had an effect on tax avoidance, capital intensity had no effect on tax avoidance while moderated regression analysis (MRA) testing showed that company size moderated the effect of earnings management on tax avoidance, company size cannot moderate the effect of transfer pricing on tax avoidance, and company size cannot moderate the effect of capital intensity on tax avoidance.

Downloads

Download data is not yet available.

References

Albrecht et.al. 2016. Fraud Examination, 3rd Edition. USA. Natorp Boulevard.

Arens, A.A et.al. 2017. Auditing: Auditing an Integrated Approach. Jakarta. Fourth Edition.

Association of Certified Fraud Examiners. 2000. Report to the Nations on Occupational Fraud and Abuse: Global Fraud Study. Association of Certified Fraud Examiners

Fimanaya, Fira and Muchamad Syafruddin. 2014. Analysis of Factors Affecting Financial Statement Fraud (Empirical Study of Non-Financial Companies Listed on the IDX in 2008-2011). Diponegoro Journal of Accounting. Volume 3 Number 3.

Fitriyani and Suzy Noviyanti. 2021. The Effect of Company Size, Quality, and Independence of the Audit Committee on Financial Reporting Fraud in IDX Companies. Costing: Journal of Ecomics, Business and Accounting. Volume 5 Number 1.

Ghozali, Imam. 2016. Application of Multivariete Analysis with IBM SPSS Version 20 Program.

Semarang. Dipenogoro University Publishing House.

Handoko, Bambang Leo and Kinanti Ashari Ramadhani. 2017. The Effect of Audit Committee Characteristics, Financial Expertise and Company Size on the Possibility of Financial Statement Fraud. DeReMa Journal of Management. Volume 12 Number 1.

Santoso. Singgih. 2015. SPSS Practice Book. Jakarta. Elex Media Computindo.

Jensen, C. M., & Meckling, W. H. 1976. Theory of the Firm: Managerial Behavior, Agency Costs and Ownwrship Structure. Journal of Financial Economics. Vol. 3, 305- 360.

Mulyadi. 2018. Audit. Yogyakarta. BPFE

Nurliasari, Khairani Erlien and Tarmizi Achmad. 2020. The Effect of Audit Committee Characteristics on Financial Reporting Fraud (Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange for the 2015-2017 Period). Diponegoro Journal of Accounting. Volume 9 Number 1.

Financial Services Authority Regulation No. 55 of 2015 on the Establishment and Implementation Guidelines for the Audit Committee.

Prasetyo, Andrian Budi. 2014. The Effect of Audit Committee and Company Characteristics on Financial Reporting Fraud (Empirical Study of Companies Listed on the Indonesia Stock Exchange for the Period 2006-2010). Journal of Accounting and Auditing. Volume 11 Number 1.

Prasetiyo, Joko and Puji Harto. 2023. Gender Diversity and Financial Expertise of the Audit Committee in Predicting Financial Statement Fraud. Owner: Accounting Research and Journal. Volume 7 Number 3.

Prastyo, Adam Maulana et al. 2022. The Effect of Fraud Diamond in Detecting Fraudulent Financial Statements. Balance Vacation Accounting Journal. Volume 6 Number 2.

Preicillia, Claudia et al. 2022. Financial Statement Fraud Analysis with a Fraud Hexagon Theory Perspective. Fair Value: Scientific Journal of Accounting and Finance. Volume 5 Number

Rianghepat, Mariana Ayu Damayanti and Erna Hendrawati. 2021. The Effect of Financial Ratios and the Audit Committee on Financial Statement Fraud in Telecommunications Companies. Eco-Bus Journal. Volume 4 Number 2.

Riskiana, Hanik and Yanto. 2020. The Effect of Financial Stability, Company Size, Industry Conditions on Financial Reporting Fraud in Companies Engaged in Finance Listed on the IDX for the 2018-2019 Period. Regional Journal of Accounting. Volume 4 Number 2.