EconPapers    
Economics at your fingertips  
 

Transfer Pricing Risk Awareness of Multinational Corporations - Evidence from a Global Survey

Sven Jost ()

Working Papers from Faculty of Economics and Statistics, Universität Innsbruck

Abstract: This paper investigates the transfer pricing risk awareness of multinational firms using cross-sectional data of more than 350 firms located in 24 countries and classified in 12 industries. Moving beyond the sole tax optimization motives of multinational firms, we extend the existing literature by using unique firm-level information such as that the transfer pricing risk awareness is assessed and reported by the person ultimately responsible for transfer pricing. We find that the level of transfer pricing risk awareness of multinational companies predominantly depends on (i) the industry a firm operates in, (ii) a country's risk classification with respect to its transfer pricing regulations (e.g. penalty regimes in case of non-compliance with transfer pricing regulations), (iii) firm size and (iv) the interaction effect of the first two factors. By way of contrast, the time of introduction of transfer pricing regulations and also tax considerations do not seem to play a crucial role for transfer pricing risk perceptions.

Keywords: Transfer pricing; International taxation; Multinational firms; Tax risk management (search for similar items in EconPapers)
JEL-codes: F23 H25 (search for similar items in EconPapers)
Pages: 36
Date: 2009-09
New Economics Papers: this item is included in nep-acc and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www2.uibk.ac.at/downloads/c4041030/wpaper/2009-21.pdf (application/pdf)

Related works:
Working Paper: Transfer Pricing Risk Awareness of Multinational Corporations: Evidence from a Global Survey (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inn:wpaper:2009-21

Access Statistics for this paper

More papers in Working Papers from Faculty of Economics and Statistics, Universität Innsbruck Contact information at EDIRC.
Bibliographic data for series maintained by Janette Walde ().

 
Page updated 2024-02-26
Handle: RePEc:inn:wpaper:2009-21