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IJSTR >> Volume 9 - Issue 2, February 2020 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

The Mediating Role Of Disclosure Quality In The Relationship Between IFRS Convergence And Profit Shifting: A Study Of Multinational Corporations In Indonesia

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Fatmasari Sukesti, Imam Ghozali, Fuad



dislosure quality, IFRS convergence, profit shifting, multinational companies.



Base Erosion and Profit Shifting (BEPS) issues have attracted many researches throughout the world. BEPS activities could reduce tax revenues for countries that apply normal or high tax rates in their taxation systems, and could also encourage the creation of injustice in the global economy. The aim of this study was to examine the mediation role of dislosure quality in the relationship between IFRS convergence and profit shifting studies in multinational companies in Indonesia. The research used panel data with 63 samples of multinational corporations listed on the Indonesia Stock Exchange 2012-2016 and tested the samples with Eviews program statistics tool. The results of the test conducted on direct relationship between IFRS convergence and profit shifting showed that implementation of IFRS convergence in Indonesia had a negative influence and significant effect on profit shifting. The results of the tests on the indirect relationship showed that IFRS convergence had significant affect to the improvement of disclosure quality, the disclosure quality had positif impact and significant effect on profit shifting. Thus the mediation role of disclosure quality have not been proven in this study. R2 showed an effect of 73,4% from the independent variable while other influences were caused by other variables.



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