Transfer Pricing and Board Gender Diversity: Testing the Interaction Effect

This study analyses the transfer pricing phenomenon in Indonesian coal mining companies. The purpose of the study is to examine the influence of ownership concentration, foreign ownership, independent commissioners, and tangibility on transfer pricing, with board gender diversity as a moderator, while controlling for company size, leverage, and profitability. The study used a sample of coal companies listed on the Indonesian Stock Exchange from 2015 to 2021. The study analyzed 87 data observations using panel data regression. The results of the interaction model test (random effect model) show that ownership concentration positively influences transfer pricing practices, while foreign ownership and independent commissioners have a negative influence. Another predictor, tangibility, does not show an impact on transfer pricing practices. The interaction effect test reveals that board gender diversity can moderate the influence of ownership concentration, independent commissioners, and foreign ownership on the company's transfer pricing actions. The novelty of this research lies in the use of board gender diversity as a moderating variable for the effect of ownership concentration, foreign ownership, independent commissioners, and tangibility on transfer pricing, which is controlled by company size, leverage, and profitability.