Author(s): Trisni Suryarini, Ain Hajawiyah, Retnoningrum Hidayah, Etty Gurendrawati, Magdalena Nany
This study aims to examine the effect of state revenue and bonus mechanism on transfer pricing. This study also aims to examine the role of tax minimization as moderating variable in the effect of state revenue and bonus mechanism on transfer pricing. The population of this study is manufacturing companies listed on the Indonesia Stock Exchange from 2013 to 2018, totaling 145 companies. The sample was selected by purposive sampling technique with a total of 108-unit analysis. The analytical method used in this study is moderation regression analysis with an absolute difference test. The hypothesis testing used is the IBM SPSS Version 23 application. The result shows that the state revenue and bonus mechanism variable do not significantly affect on the transfer pricing variable. The tax minimization variable moderates the effect of state revenue on transfer pricing positively. However, tax minimization does not moderate the effect of the bonus mechanism on transfer pricing.