Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Effect of Bonus Plan, Debt Covenant, Firm Size and Tunneling Incentive on Tax Avoidance With Transfer Pricing as Intervening Variables

Author(s): Maylia Pramono Sari, Eka Amania Majidah, Surya Raharja

The purpose of this study was to examine the effect of bonus plans, debt covenants, firm size and tunneling incentives on tax avoidance with transfer pricing as an intervening variable. The research sample used was mining companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2018 period as many as 50 companies were obtained by purposive sampling. The analytical method used in this research is multiple linear regression analysis with IBM SPSS Statistics 21 software and path analysis and multiple tests to test transfer pricing in mediating the relationship between bonus plans, debt covenants, firm size and tunneling incentives to tax avoidance. The results showed that the bonus plan and debt covenant had a negative and significant effect on tax avoidance. Firm size and tunneling incentives do not have a significant effect on tax avoidance. Whereas transfer pricing cannot mediate the relationship between bonus plans, debt covenants, firm size and tunneling incentives to tax avoidance.

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