The Effect of Exchange Rates, Profitability and the Bonus Mechanism in the Decision of Transfer Pricing at Consumption Goods Industry

Indriaty,, Lely and Thomas, Gen Norman (2019) The Effect of Exchange Rates, Profitability and the Bonus Mechanism in the Decision of Transfer Pricing at Consumption Goods Industry. In: 4 th International Conference on Business and Econpmics (ICBE) 2019, 11-12 November 2019, Padang, Sumatera Barat. (Submitted)

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Abstract

This study aims to analyze the effect of exchange rates, profitability and the bonus mechanism in transfer pricing at consumption goods industry. Data is taken from financial statement presented on Indonesia Stock Exchange in 2014-2018. The sample was obtained a sample of 10 companies with purposive sampling method from 40 public companies. Panel data processing uses Eviews9 to obtain the fixed effect regression equation, t test (partially), F test (simultaneously) and the discussion of influence analysis. The result revealed that transfer pricing decision was significantly affected by profitability (-) . The decision of transfer pricing was not influenced by exchange rate and bonus mechanism. F test states exchange rates, profitability and bonus mechanism simultaneously influenced significantly in the decision of transfer pricing. The highest and the lowest influence in changing of profitability was on HMSP and SKLT. Key words: Exchange Rate, Profitability, Bonus Mechanism, Transfer

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions: Fakultas Ekonomi dan Bisnis > Akuntansi S1
Depositing User: Dr Gen Norman Thomas
Date Deposited: 24 Aug 2020 07:06
Last Modified: 24 Aug 2020 07:06
URI: http://repository.upi-yai.ac.id/id/eprint/431

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