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Internal and external factors on firms? transfer pricing decisions: Insights from organization studies

Author

Listed:
  • Dan Li

    (Kelley School of Business - Indiana University)

  • Manuel Portugal Ferreira

    (Instituto Politécnico de Leiria)

Abstract

Well understood in economics, accounting, finance, and legal research, transfer pricing has rarely been comprehensively explored in organization management literature. This paper explores some theoretical explanations of transfer pricing within multidivisional firms drawing insights from various organizational theories - primarily institutional theory, transaction cost economics, and social networks - to develop a conceptual model of transfer pricing. This model focuses on the nature of multidivisional firms' internal transfers, internal and external technological environments, and internal and external social environments. We highlight the importance of transfer pricing as a key strategic dimension to understand intra-firm flows and their associated costs.

Suggested Citation

  • Dan Li & Manuel Portugal Ferreira, 2007. "Internal and external factors on firms? transfer pricing decisions: Insights from organization studies," Working Papers 5, globADVANTAGE, Polytechnic Institute of Leiria.
    • Handle: RePEc:pil:wpaper:5
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    File URL: https://globadvantage.ipleiria.pt/files/2007/11/working-paper-6_globadvantage.pdf
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    References listed on IDEAS

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    Cited by:

    1. Andrea Cuccia, 2018. "Potential of IFRS 8: Managerial "customization", relevance of subsidiaries and separate financial statements," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2018(1), pages 103-131.
    2. Hussein, Mohamed E. & Kraten, Michael & Seow, Gim S. & Tam, Kinsun, 2017. "Influences of Culture on Transfer Price Negotiation," The International Journal of Accounting, Elsevier, vol. 52(3), pages 227-237.

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    More about this item

    Keywords

    theory; value; transfer pricing; intra-firm flows; multidivisional firm;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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