Causal-Comparative Macroeconomic Behavioral Study: International Corporate Financial Transfer Pricing in the United States
This research paper summarizes the ideas of maximization of corporate welfare and basic firm theory, transfer prices among corporate subsidiaries have been found to complicate performance evaluations of subsidiaries and the parent company. The research problem addressed the lack of understanding of...
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| Format: | Article |
| Language: | English |
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Academic Research and Publishing UG
2020-04-01
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| Series: | Financial Markets, Institutions and Risks |
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| Online Access: | https://armgpublishing.com/wp-content/uploads/2020/04/5-2.pdf |
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| author | Karina Kasztelnik |
| author_facet | Karina Kasztelnik |
| author_sort | Karina Kasztelnik |
| collection | DOAJ |
| description | This research paper summarizes the ideas of maximization of corporate welfare and basic firm theory, transfer prices among corporate subsidiaries have been found to complicate performance evaluations of subsidiaries and the parent company. The research problem addressed the lack of understanding of transfer price policy and its application to impact firm profits within three specific measures: investor return, earnings per share, and effective tax rate. The main purpose of this study was to ascertain an empirical relationship between transfer pricing policies and these financial performance measures within a study of two multinational firms. The research paper presents of an empirical result indicated statistically significant differences between the measures for each firm and allowed further comparative analysis based on other collected data. Overall, results indicated each measure of performance affected transfer pricing tax liabilities and transfer pricing may be a vehicle to improve company profitability. The results of this study may contribute to positive social change by bringing a focus to efficiency in transfer pricing, which could yield positive impacts on the economy through the reduction of international transaction costs stemming from minimization of tariffs, income tax liabilities at home and abroad, foreign exchange risk and conflicts with foreign governments’ policies. Positive social change may also be affected by providing investors a new perspective on corporate financial data based on transfer price policies and corporate performance. |
| format | Article |
| id | doaj-art-77b605ebf6b0412ba3bbbcdc350a3e73 |
| institution | OA Journals |
| issn | 2521-1250 2521-1242 |
| language | English |
| publishDate | 2020-04-01 |
| publisher | Academic Research and Publishing UG |
| record_format | Article |
| series | Financial Markets, Institutions and Risks |
| spelling | doaj-art-77b605ebf6b0412ba3bbbcdc350a3e732025-08-20T02:09:22ZengAcademic Research and Publishing UGFinancial Markets, Institutions and Risks2521-12502521-12422020-04-0141607510.21272/fmir.4(1).60-75.2020Causal-Comparative Macroeconomic Behavioral Study: International Corporate Financial Transfer Pricing in the United StatesKarina Kasztelnik0https://orcid.org/0000-0002-1090-3700Ph.D., MBA, CPA, CTP, Grand Canyon University, Phoenix, Arizona, USAThis research paper summarizes the ideas of maximization of corporate welfare and basic firm theory, transfer prices among corporate subsidiaries have been found to complicate performance evaluations of subsidiaries and the parent company. The research problem addressed the lack of understanding of transfer price policy and its application to impact firm profits within three specific measures: investor return, earnings per share, and effective tax rate. The main purpose of this study was to ascertain an empirical relationship between transfer pricing policies and these financial performance measures within a study of two multinational firms. The research paper presents of an empirical result indicated statistically significant differences between the measures for each firm and allowed further comparative analysis based on other collected data. Overall, results indicated each measure of performance affected transfer pricing tax liabilities and transfer pricing may be a vehicle to improve company profitability. The results of this study may contribute to positive social change by bringing a focus to efficiency in transfer pricing, which could yield positive impacts on the economy through the reduction of international transaction costs stemming from minimization of tariffs, income tax liabilities at home and abroad, foreign exchange risk and conflicts with foreign governments’ policies. Positive social change may also be affected by providing investors a new perspective on corporate financial data based on transfer price policies and corporate performance.https://armgpublishing.com/wp-content/uploads/2020/04/5-2.pdffinancetransfer pricingmacroeconomycorporate performanceeffective tax rateearnings per shareinvestor return |
| spellingShingle | Karina Kasztelnik Causal-Comparative Macroeconomic Behavioral Study: International Corporate Financial Transfer Pricing in the United States Financial Markets, Institutions and Risks finance transfer pricing macroeconomy corporate performance effective tax rate earnings per share investor return |
| title | Causal-Comparative Macroeconomic Behavioral Study: International Corporate Financial Transfer Pricing in the United States |
| title_full | Causal-Comparative Macroeconomic Behavioral Study: International Corporate Financial Transfer Pricing in the United States |
| title_fullStr | Causal-Comparative Macroeconomic Behavioral Study: International Corporate Financial Transfer Pricing in the United States |
| title_full_unstemmed | Causal-Comparative Macroeconomic Behavioral Study: International Corporate Financial Transfer Pricing in the United States |
| title_short | Causal-Comparative Macroeconomic Behavioral Study: International Corporate Financial Transfer Pricing in the United States |
| title_sort | causal comparative macroeconomic behavioral study international corporate financial transfer pricing in the united states |
| topic | finance transfer pricing macroeconomy corporate performance effective tax rate earnings per share investor return |
| url | https://armgpublishing.com/wp-content/uploads/2020/04/5-2.pdf |
| work_keys_str_mv | AT karinakasztelnik causalcomparativemacroeconomicbehavioralstudyinternationalcorporatefinancialtransferpricingintheunitedstates |