Analysis of The Effect of Tax Minimization, Tunneling Incentive, and Bonus Mechanism on Corporate Decisions to Make a Pricing Transfer
(Empirical Study on Manufacturing Companies Listed on IDX)
Abstract. World financial sector today already growth without seeing the boundaries.
Every singel owner of the company compete to produce excellent product with a low price
to resolve maximum earning. it can be resolve with transfer pricing action.
This study aims to examine the influence of tax minimization, tunneling incentive and
Bonus mechanism with decision to do a transfer pricing. The population in this study is a
manufacturing company listed on the stock exchange in 2013-1016 totaled 31 companies,
and the sample is toke with purposive sampling method. Data was collacted using
purposive sampling method for manufacturing companies listed on the indonesia stock
exchange.The analysis tool is logistic regression used SPSS V.23.
Data were analyzed using logistic reggression analysis. The result of this study is tax
minimization, tunneling incentive and Bonus Mechanism influence the company decision
to do a transfer pricing.The determination coefficient is 0,385 that means 38,5% transfer
pricing affected by independent variable, while the rest is explained by other variable.This
result shows that is many other variable in outside of this study that can explain transfer
Keywords: Tax Minimization, Tunneling Incentive and Transfer Pricing