Formation of the Financial Mechanism for Transfer Pricing of Industrial Corporations in the Context of Risk Management and Business Process Automation

DOI

10.2991/aebmr.k.200502.187How to use a DOI?

Keywords

digital technologies, financial risk management, industrial corporations, choice of transfer pricing methods, transparency of financial information, profit generation

Abstract

The article discusses the system of the impact of entrepreneurial risks and the financial result of the activities of industrial corporations / companies when they apply the transfer pricing mechanism in the context of digitalization of business processes, transparency and mobility of financial information, as well as improving the efficiency of managing integrated corporate structures. The study is based on the author’s hypothesis about the correlation of the applied transfer pricing method in industrial corporations, the phase of the life cycle which they are currently at and the degree of possibility / impossibility of minimizing financial risks. In order to confirm this hypothesis, the authors developed and logically substantiated an algorithm for the search and selection of comparable companies, a financial mechanism for choosing the method of intra-group pricing in corporations. The authors also determined the functions of the company / corporation in a controlled transaction, systematized approaches to the selection of a possible transfer pricing method, and generalized the sources of information used in transactions in transfer pricing. All this allowed the authors to build a financial and economic model of transfer pricing management in corporate structures in order to minimize risks and practically test it on a group of industrial companies.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - G.Y. Sheina
AU  - A.A. Pausov
AU  - A.V. Kurdumov
PY  - 2020
DA  - 2020/05/05
TI  - Formation of the Financial Mechanism for Transfer Pricing of Industrial Corporations in the Context of Risk Management and Business Process Automation
BT  - Proceedings of the 2nd International Scientific and Practical Conference “Modern Management Trends and the Digital Economy: from Regional Development to Global Economic Growth” (MTDE 2020)
PB  - Atlantis Press
SP  - 1130
EP  - 1136
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200502.187
DO  - 10.2991/aebmr.k.200502.187
ID  - Sheina2020
ER  -