Determinants of transfer pricing decision in Malaysian multinational companies.

This study done is to investigate the determination namely debt covenants, foreign ownership, tax avoidance and company size of transfer pricing decision in Multinational companies in Malaysia. In order to achieve this, the study applied descriptive study and secondary sources were used to collect data. The study used hypothesis testing research using 30 samples data gained from Bursa Malaysia during year 2020 and 2021. The results of this study conclude that none of the determination namely debt covenants, foreign ownership, tax avoidance and company size have significant relationship towards transfer pricing decisions in Multinational companies in Malaysia. This research aims to assist investors, auditors, and the policy makers in identifying factors that will lead multinational company to engage in transfer pricing practices and knowing which areas they should focus on when making investment decisions, during audit procedures, and for the government to improve transfer pricing regulations in Malaysia.