Analysis of financial and non-financial aspects in determination of transfer pricing

This research aims to analyze financial and non-financial aspects in determining transfer pricing. Transfer pricing is a crucial practice in the management of multinational companies as it directly impacts company profits, tax obligations, and relationships with investors. In transfer pricing practices, many companies misuse this method to manipulate prices for certain benefits. Transfer pricing practices occur due to various influencing factors. This research employs a descriptive analysis method using a literature review approach. A total of 30 previous studies from the period 2019 - 2024 were used as research samples, sourced from both national and international journals. Based on these previous studies, several variables were found to influence transfer pricing actions, observable from financial aspects such as profitability, taxes, and leverage, as well as non-financial aspects such as tunneling incentives, bonus mechanisms, and company size.

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Publication Details

Journal
Educoretax
Published
2024-09-27
DOI
https://doi.org/10.54957/educoretax.v4i9.1124
Primary Topic
Material Science and Thermodynamics
Type
article
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article

Analysis of financial and non-financial aspects in determination of transfer pricing

Suparna Wijaya, Silva Fahsya Abdulrachman Soap, Vania Regina Grace, Annisa Aulia Djati et al.
Educoretax
Material Science and Thermodynamics
article

Analysis of financial and non-financial aspects in determination of transfer pricing

Suparna Wijaya, Silva Fahsya Abdulrachman Soap, Vania Regina Grace, Annisa Aulia Djati, Destiana Amelia Putri, Najla Huwaida
article en

Abstract

This research aims to analyze financial and non-financial aspects in determining transfer pricing. Transfer pricing is a crucial practice in the management of multinational companies as it directly impacts company profits, tax obligations, and relationships with investors. In transfer pricing practices, many companies misuse this method to manipulate prices for certain benefits. Transfer pricing practices occur due to various influencing factors. This research employs a descriptive analysis method using a literature review approach. A total of 30 previous studies from the period 2019 - 2024 were used as research samples, sourced from both national and international journals. Based on these previous studies, several variables were found to influence transfer pricing actions, observable from financial aspects such as profitability, taxes, and leverage, as well as non-financial aspects such as tunneling incentives, bonus mechanisms, and company size.

EducoretaxVol. 4(9)
Universitas Pembangunan Nasional Veteran Jakarta (ID)
Partnerships for the goals
Openalex Percentile: Top 84%
Material Science and Thermodynamics
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Analysis of financial and non-financial aspects in determination of transfer pricing — Suparna Wijaya, Silva Fahsya Abdulrachman Soap, et al. · Educoretax (2024) | TGRS Research Map | TGRS