The Influence of Exchange Rate, Profitability, and Tunneling Incentive on Transfer Pricing in Industrial Sub-Sector Companies

Abstract

This research aims to find out how much influence the exchange rate, profitability and tunneling incentive transfer pricing have on industrial sector companies in Indonesia. The samples used in this research were companies in the various services industry sectors on the Indonesia Stock Exchange in 2017-2022. The sampling method was carried out using the purposive sampling method. The sample in this company was 6 companies with an observation period of 5 years. The data was analyzed using panel data regression techniques with Eviews 12 software. Based on the research results, it shows that tunneling incentives influence transfer pricing decisions, while exchange rate and profitability have no influence on transfer pricing decisions.