Research ArticleOpen AccessGoogle Scholar indexed
Business Cycle and TPM of TNCs
- 1
Copy link · social · email
Abstract
This article is devoted to analyses on effects of the four phases of business cycle on transfer pricing manipulation (TPM) of transnational corporations (TNCs) and TNCs’ possible TMP practices through business cycle. The researcher herein holds that business cycle arouses the fluctuation of economical indicators and policy changes, which subsequently affect TNCs’ production, financial situation, sales and their resource allocation globally. Acting as a reasoning business being, TNCs should take according strategies to manipulate transfer pricing to harbor the possible benefit and escape from any risk ahead, by taking advantage of their “Trans-nationality”.
KeywordsBusiness CycleTransfer PricingManipulationTNCs
- Hirshleifer and Jack, “On the Economics of Transfer Pricing,” Journal of Business, Vol. 29, 1956, pp. 172-83. HHdoi:org/10.1086/294110
- Zeile and J. William, “U.S. Intrafirm Trade in Goods,” Survey of Current Business, Vol. 2, 1997, pp. 23-38.
- K. S. Cravens, “Examining the Role of Transfer Pricing as a Strategy for Multinational Firms,” International Business Review, Vol. 2, No. 6, 1997, pp. 127-145. HHdoi:org/10.1016/S0969-5931(96)00042-X
- B. Kogut, and K. Nalin, “Operating Flexibility, Global Manufacturing and the Option Value of a Multi- national Network,” Management Science, Vol. 1, No. 40, 1994, pp. 123-39. HHdoi:org/10.1287/mnsc.40.1.123
- E. Lorraine, “The Internalization Benefits of Transfer Price Manipulation,” December 2003, Bush School Working Paper 315#, p. 4.
- Hines and James, “Lessons from Behavioral Responses to International Taxation,” National Tax Journal, Vol. 2, No. 52, 1999, pp. 305-310.
- Horst and Thomas, “Theory of the Multinational Firm: Optimal Behavior under Differing Tariff and Tax Rates,” Journal of Political Economy, Vol. 10, No. 79, 1971, pp. 1059-1072. HHdoi:org/10.1086/259814
- H. M. Rober and S. Bin, “U.S. Income Tax Transfer Pricing Rule and Resource Allocation: The Case of Decentralized Multinational Firms,” The Accounting Review, Vol. 66, No. 1, 1991, pp. 141-156.
- Roger and Y. W. Tang, “Environmental Variables of Multi- national Transfer Pricing: AU.K. Perspective,” Journal of Business and Accounting, Vol. 2, No. 9, 1982, pp. 179-189.
- Abdallah and M. Wagdy, “How to Motive and Evaluate Managers with International Transfer pricing System,” Management International Review, Vol. 29, No. 1, 1989, pp. 35- 40.