Depok-Postgraduate Program in Accounting Science (PPIA), Faculty of Economics and Business, Universitas Indonesia, held an open session for Doctoral Promotion of Dewi Kartika Sari, which took place in rooms 401-403, FEB UI Postgraduate Building, Monday (24/7).
The Doctoral Promotion Session was chaired by Prof. Nachrowi D. Nachrowi, Ph.D., with Prof. Dr. Sylvia Veronica Nalurita Purnama Siregar (Promoter), Dr. Dwi Martani (Co-Promoter I), and Dr. Ludovicus Sensi W, M.M. (Co-Promoter II). As the testing team, Hilda Rossieta, M.Com., Ph.D. (Chief Examiner), Dr. Fitriany, S.E., M.Ak., Yulianti, M.S.M., Ph.D., and Dr. Samingun.
Dr. Dewi Kartika Sari presented her dissertation entitled ‘The Influence of Audit Quality and Corporate Governance on Transfer Pricing Aggressiveness and Corporate Risk’ at this open session.
(Photo: Dr. Dewi Kartika Sari with the supervisor of the examiner team and the promoter in her doctoral promotion session)
This research is important to (1) reconfirm the relationship between the auditor and the client, (2) increase the company’s understanding of profits and losses transfer pricing in corporate strategy, (3) developing research on audit quality and company risk by considering the tax aspects of multinational companies in the test, and (4) knowing whether the principles of transparency and oversight of the mechanisms corporate governance can strengthen the audit quality function in reducing transfer pricing aggressiveness and weaken the company’s increased risk due to transfer pricing aggressiveness.
The data summarized comes from data on non-financial public companies in Indonesia, Malaysia and Singapore, during the period 2014 to 2018, with a total of 1,470 firm-year observations.
(Photo: Submission of the results of Dr. Dewi Kartika Sari’s doctoral promotion)
The test results show that audit quality has a positive effect on transfer pricing aggressiveness. In addition, companies that implement transfer pricing aggressiveness tend to have lower corporate risk. This is presumably because transfer pricing transactions are efficient transactions.
This research also documents audit quality indirectly reducing company risk. The indirect relationship occurs through an aggressive transfer pricing mechanism. In addition, research finds that quality disclosure and transparency can weaken the positive relationship between audit quality and transfer pricing aggressiveness while at the same time strengthening the negative relationship between transfer pricing aggressiveness and corporate risk.
With this, the Leadership Council of the open doctoral promotion session decided, Dewi Kartika Sari graduated with the title of ‘Very Satisfactory’ and won her 92nd Doctoral degree in the Postgraduate Program in Accounting. Congratulations to Dr. Goddess Kartika Sari!
