Environmental And Organizational Factors Affecting Transfer Pricing Method

With China's reform and opening up more than 20 years,the entire economic and social development has made great achievements,which also contributed to the academic community to a deeper exploration of the broader economic sphere,and which something new is devoted a great deal of enthusiasm.It is in this context since the 1990s,there is continuous and in-depth study on transfer pricing.In Chinese's theoretical circles.This incision which is smaller but there is no lack of depth the theoretical issues are also full of the actual use value of the enterprise.The transfer pricing is an important part of the enterprise financial cost management for only engaged in domestic trade for large enterprise group and the formulation of the transfer price has been the focus of attention of the top financial personnel.In the practice of pricing,facing with the interests of all parties and restrictive conditions,the group enterprise is often very difficult to work out a very ideal internal transfer price.The complexity of the enterprise internal transfer pricing is in:Making the transfer pricing should consider the internal and external factors of the enterprise;Try to make the transfer pricing possible for the various contradictory targets.In view of this,this article takes the investigation of evidence for surveying the choice of the internal transfer pricing method in form of questionnaire in Chinese' manufacturing,tries to analysis in-depth the influence factors of the transfer price to know comprehensively,According to the organization and environmental factors of effecting the transfer pricing method choice,this paper establishes the effective and related model,in order to reveal the specific influence factors of the transfer pricing method choice for Chinese manufacturing enterprise and to provide a meaningful reference.This paper is divided into five chapters:Chapter I is an introduction.This paper puts forward the research questions from the background of the topic,and thinks that the current economy of our country is in the transitioning situation.In the process of the state-owned enterprise transform to the joint-stock enterprises,they face the abuse and the misuse of transfer pricing,and so lead to have the extremely serious influence,which hinder the normal development of the reform of state-owned enterprises.Especially in our country securities market,which also faces many problems of transferring pricing,so study the transfer pricing of corporate governance mode in the transitioning economic,set up and use the reasonable transfer pricing mechanism,analyze the factors which choices,then adjust measures to choose transfer pricing method in local conditions,provide the coordination and incentive mechanism of the department interests and the overall interest for corporate governance,and make the enterprise form the "new value maximization".Chapter ?..In this session,it reviews the domestic and foreign existing literature on transferring pricing,sorts and summarizes the transfer pricing purpose,transfer pricing methods and the influencing factors of transfer pricing,which provides the support for the research in theory.Chapter ? makes a detailed overview for the theory analysis of transferring pricing.Mainly from economic analysis,accounting analysis,management analysis of the transfer pricing,the influencing factors of transfer ring pricing method choice and the transfer pricing method choice of the different enterprise environment and so on aspects,which provide the ramming foundation for the empirical analysis.Chapter IV studies the empirical research the influence factors of transferring pricing metod choice,which including that the model is established,the assumption is put forward,and the variable are defined and the questionnaire is designed,issued,taken back,inspected and analyzed,which comprehensively demonstrates how the environmental factors and organizational factors influence the choice of the transfer pricing methods.Chapter V is the research conclusion,problems and the future research direction.On the basis of the research design,this paper puts forward a reliable conclusion of transferring pricing method choice,some shortage and the direction of the further research.This paper discusses and analyzes the influence factors of transferring pricing method choice for the manufacturing enterprise in our country.Through analyzing,this paper has three big contributions,as follows:First of all,this paper makes a study of the influence factors of transferring pricing method choice in Chinese's manufacturing enterprises.In the academic research in China,there is almost no research for manufacturing enterprises and most is multinational enterprise or foreign capital enterprise;Secondly,though using contingency theory and taking example by the western academic standard research method combining with the Chinese enterprise's actual situation,this paper studies environment factors and internal organization factors on the influence of transfer pricing to choose a suitable transfer pricing for enterprise;Third,most of the previous studies used normative research methods,only including the transfer pricing theory research and there is almost no the empirical research method.The domestic more used normative research.So this paper discusses the environmental and the organizational factors of influencing transfer pricing method choice,researches based on the questionnaire design,and according to the questionnaire,research hypotheses are proposed,through the collection of data to empirical research,so as to put forward which enterprise choose transfer pricing method.