IDEAS home Printed from https://ideas.repec.org/a/alk/jefas0/v4y2022i2id3154.html

The Effect of Transfer Pricing, Capital Intensity, and Earnings Management on Tax Avoidance

Author

Listed:
  • Corinna Theodora Gunawan

    (The Department of Accounting, Mercu Buana University, Jakarta, Indonesia)

  • Dwi Asih Surjandari

    (The Department of Accounting, Mercu Buana University, Jakarta, Indonesia)

Abstract

Taxation is a mechanism for collecting state revenues and an instrument of a country's fiscal policy. However, tax is a burden for the company. So the company's management is interested in maximising profits by avoiding taxation. This study aims to determine the effect of transfer pricing, capital intensity, and earnings management on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange for the 2015–2019 period. The determination of the research sample was made using the purposive sampling method, with a total sample of 66 companies, to obtain 330 data. The software used is E-views 9. Tax avoidance was proxied by the cash effective tax rate; transfer pricing was proxied by the ratio of related party sales transactions to total sales; capital intensity was proxied by the percentage of total fixed assets to total company assets, and earnings management was proxied by the modified Jones discretionary accrual model. The results show that transfer pricing, capital intensity, and earnings management significantly affect tax avoidance simultaneously or partially.

Suggested Citation

  • Corinna Theodora Gunawan & Dwi Asih Surjandari, 2022. "The Effect of Transfer Pricing, Capital Intensity, and Earnings Management on Tax Avoidance," Journal of Economics, Finance and Accounting Studies, Al-Kindi Center for Research and Development, vol. 4(2), pages 184-190, April.
    • Handle: RePEc:alk:jefas0:v:4:y:2022:i:2:id:3154
    DOI: 10.32996/jefas.2022.4.2.14
    as

    Download full text from publisher

    File URL: https://al-kindipublisher.com/index.php/jefas/article/view/3154
    File Function: Abstract page
    Download Restriction: no
    File URL: https://al-kindipublisher.com/index.php/jefas/article/download/3154/2778
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.32996/jefas.2022.4.2.14?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:alk:jefas0:v:4:y:2022:i:2:id:3154. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Al-Kindi Center for Research and Development (email available below). General contact details of provider: https://al-kindipublisher.com/index.php/jefas .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.