The Effect of Tax Minimization and Company Size on Transfer Pricing Moderated by Profit Management

Abstract

Transfer pricing is an internal corporate rule relating to the price of transactions carried out with
related parties. The objective of the survey is to test and analyze the partial impact of tax
minimization and corporate size on transfer pricing, as well as to test whether profit management
moderates the impact of tax minimization and the size of the company on transfer pricing.
Quantitative methods use corporate financial statements as secondary data. Mining companies listed
in the EIB from 2019 to 2022 are the subject of research. Purposive sampling method is used to
determine the sample, and twelve companies are selected. Data analysis using descriptive statistics,
validity tests, classical assumption tests, linear regression analysis, and moderation tests through
residual methods. Research results show that tax minimization has a significant positive impact on
transfer pricing. The size of the company has a significant negative impact. Profit management has
not been shown to moderate the impact of tax minimization and corporate size on transfer pricing.