Influence of Transfer Pricing, CEO Compensation, and Accounting Irregularities on Tax Aggressiveness

Abstract

The purpose of this study is to investigate the influence of transfer pricing, chief executive officers’ compensation, accounting irregularities on tax aggressiveness. The sample covers manufacturing companies listed on the Indonesian Stock Exchange (IDX) during 2012 – 2016. By using purposive sampling, selected companies data amounted to 115, thus the total sample used in this study is 575. Based on the sample collected, this research uses partial least square method in hypothesis testing. Contrary to prior research, the results of this study indicate that transfer pricing has influence on tax aggressiveness. Meanwhile, chief executive officers’ compensation and accounting irregularities have no influence on