Agency Relationship and Transfer Pricing Inefficiency

Vztahy zastoupení a neefektivnost transferových cen

Libor Kaiser

Acta Oeconomica Pragensia, 2006, vol. 2006, issue 3, 73-81

Abstract: Transfer pricing policy is a very important activity within multinational firms. The importance of this policy has been increasing since the time of globalization has come. There are many reasons for implementing such a policy. The international capital mobility allows multinational firms to allocate capital among their subsidiaries mainly due to savings connected to the taxation policies of individual states. It is not easy to study transfer pricing because it belongs to best guarded know-how of each firm. In this article I will show possible inefficiencies of transfer pricing using an agency theory point of view.

Keywords: transfer pricing; agency theory; multinational firm; taxation policy (search for similar items in EconPapers)
JEL-codes: G39 (search for similar items in EconPapers)
Date: 2006
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DOI: 10.18267/j.aop.94

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