Tax Havens, Foreign Ownership, and Transfer Pricing: The Moderating Role of Good Corporate Governance

Abstract

This study investigates the influence of tax havens and foreign
ownership on transfer pricing decisions, with a focus on the
moderating role of good corporate governance. The research
sample consists of manufacturing companies in the consumer
goods sector listed on the Indonesia Stock Exchange (IDX) during
the 2019–2022 period. The purposive sampling method was
employed, resulting in a sample size of 27 companies, or 108
observations. Data analysis was conducted using Moderated
Regression Analysis (MRA). The findings reveal that both tax
havens and foreign ownership positively influence transfer pricing
decisions. Additionally, good corporate governance moderates the
relationship between tax havens and transfer pricing decisions, but
it does not moderate the relationship between foreign ownership
and transfer pricing decisions. This study contributes to the
academic discourse on international tax policies and transfer
pricing regulations. It also advances contemporary management
accounting theory by providing insights into the interplay between
tax strategies, ownership structures, and corporate governance
mechanisms in influencing transfer pricing decisions.