IJRR

International Journal of Research and Review

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Research Paper

Year: 2023 | Month: June | Volume: 10 | Issue: 6 | Pages: 606-618

DOI: https://doi.org/10.52403/ijrr.20230675

The Effect of Financial Derivatives, Financial Leverage, and Exchange Rate on Transfer Pricing Aggressiveness in Manufacturing Companies Listed on the Indonesia Stock Exchange

Alqonitur Rasyidah1, Abdillah Arif Nasution2, Sirojuzilam3

1,2,3Department of Accounting, Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia

Corresponding Author: Alqonitur Rasyidah

ABSTRACT

This study aims to test and analyse whether financial derivatives, financial leverage, and exchange rate affect transfer pricing aggressiveness in manufacturing companies listed on the Indonesia stock exchange.
This research was conducted by collecting financial statement data of manufacturing companies listed on the Indonesia Stock Exchange through the official website www.idx.c.id. The sampling technique used is purposive sampling. Hypothesis testing using panel data regression method analysis.
The results showed that financial derivatives and financial leverage have a negative effect on transfer pricing aggressiveness. At the same time, the exchange rate does not affect transfer pricing aggressiveness.

Keywords: Financial Derivatives, Financial Leverage, Exchange Rate, Transfer Pricing Aggressiveness.

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