Effects Of Exchange Rates On International Transfer Pricing Decisions

Chan, Canri; Landry, Steven P.; Jalbert, Terrance

doi:10.19030/iber.v3i4.3685

Cited by 6 publications

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“…But not in accordance with research conducted by Chan, Landry, and Jalbert (2004) and Bernard et al, (2006). According to Chan, Landry, and Jalbert (2004) states that multinational companies may try to curb foreign exchange rate risk by moving funds into strong currencies through transfer pricing to maximize overall corporate profits.…”

Section: E the Effect Of Exchange Rate On Transfer Pricingmentioning

confidence: 97%

“…Transfer pricing can be used to reduce the exposure of multinational corporations' transactions on the risk of exchange rate changes by moving funds into strong currencies. According to Chan, Landry, and Jalbert (2004) states that multinational companies may try to curb foreign exchange rate risk by moving funds into strong currencies through transfer pricing to maximize overall corporate profits. Bernard et al, (2006) also found that there is an effect of exchange rate on transfer pricing decisions inside and outside the firm; an appreciation of the dollar reduces the difference between the prices.…”

Section: Introductionmentioning

confidence: 99%

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Some Factors That Affect Transfer Pricing Decision

Septiyani

Ramadhanti

Sudibyo

2018

SAR

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The objectives of this research is to analyze the effect of tax minimization, firm size, foreign ownership bonus mechanism, and exchange rate on transfer pricing decision in multinational company engaged in manufacturing that listed on Indonesia Stock Exchange from the year of 2015 to 2016. Sampling method in this study is using purposive sampling using 8 criterias that have been determined. The result of binary regression analysis shows that only tax minimization that has positive effect on transfer pricing decision. While the others variable which are, firm size, foreign ownership, bonus mechanism, and exchange rate do not has an effect on transfer pricing decision.

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Section: E the Effect Of Exchange Rate On Transfer Pricingmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

Some Factors That Affect Transfer Pricing Decision

Septiyani

Ramadhanti

Sudibyo

2018

SAR

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“…Different results are delivered by Qiansyah (2016) and Putri et al (2018) that tax minimization has no effect on transfer pricing. Research results by Chan et. al.…”

Section: Introductionmentioning

confidence: 93%

“…This research is in accordance with agency theory, Jensen & Meckling (1976) explained that there is an assumption of human nature that underlies agency theory, which is selfish and tends to dislike risk. Correspondingly, the companies are faced with the economic risk of exchange rate, so they will try to reduce the exchange rate risk by moving funds to a strong currency through transfer pricing (Chan et al, 2004). Cravens & Shearon (1996) stated to control the risk of gains and losses from foreign currency transactions, the companies will use transfer pricing as a protective fence to deal with changes in exchange rates.…”

Section: The Effect Of Exchange Rate On Transfer Pricingmentioning

confidence: 99%

“…Exchange rate which is fluctuating can affect the transfer pricing in the company (Marfuah & Azizah, 2014). Agency theory explains the assumption of basic human nature, where humans always avoid risks, then according to Chan et al (2004) management tends to reduce the risk of exchange rate through the transfer of funds to a strengthening currency through transfer pricing. Some studies like Chan et al, (2004), Alino & Lane (2015), and Viviany (2018) find evidence that exchange rate has a positive effect on transfer pricing.…”

Section: Introductionmentioning

confidence: 99%

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The Effect of Tax Minimization and Exchange Rate on Transfer Pricing Decisions with Leverage as Moderating

Devi¹,

Suryarini²

2020

aaj

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The aims of this research are to analyze and to find empirical evidence about the effect of tax minimization and exchange rate on company decision of transfer pricing with leverage as moderating variable. The population of this research was mining companies which listed in Indonesia Stock Exchange (IDX) over the period 2013 to 2018 from 45 companies. The sampling technique used purposive sampling. Eighteen companies were selected with 65 units analysis were obtained. In addition, data was analyzed using descriptive statistics and inferential statistics using Moderated Regression Analysis (MRA). The data was processed by IBM SPSS Statistics 21 software. The results show that tax minimization and exchange rate have positive and significant effect on transfer pricing. Leverage does not moderate the effect of tax minimization on transfer pricing but leverage significantly moderate the effect of exchange rate on transfer pricing. The conclusion of this research is transfer pricing decision will be higher when tax minimization and exchange rate be higher, but leverage can moderate the effect of exchange rate to transfer pricing.

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Transfer Pricing in V4 Countries

Poreisz¹,

Brychta²,

Ištok³

et al. 2020

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International Visegrad Fund, whose mission is to advance ideas for sustainable regional cooperation in Central Europe. In this respect, all the members of the research team would like to express their gratitude and thanks to the support provided and, at the same, declare their hope that the results of this project fulfil the mission of the Visegrad Fund. The authors of the monograph would like to thank the project manager, Mr. Dániel Péter. Dear Dániel, we thank you for your fast responses and willingness to help us. We have appreciated it very much.

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Effects Of Exchange Rates On International Transfer Pricing Decisions

Abstract: The following Table was submitted by the authors as an update, however, the International Business & Economics Research Journal, Volume 3, Number 3, page 39 had already gone to press. We apologize for any inconvenience.

Cited by 6 publications

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Some Factors That Affect Transfer Pricing Decision

Some Factors That Affect Transfer Pricing Decision

The Effect of Tax Minimization and Exchange Rate on Transfer Pricing Decisions with Leverage as Moderating

Transfer Pricing in V4 Countries

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