Pricing Practices Research Articles

Analisis Pengaruh Minimasi Pajak Dan Mekanisme Bonus Terhadap Transfer Pricing Dengan Komite Audit Sebagai Variabel Pemoderasi

This research aims to test and analyze the direct influence of tax minimization strategies, tunneling incentives, and bonus mechanisms on transfer pricing decisions. Meanwhile, the indirect influence involves the audit committee as a moderating factor, to test its influence on transfer pricing practices. The data used in this research comes from the Annual Reports of natural resource sector companies listed on the Indonesia Stock Exchange during the 2021-2022 period. A total of 185 companies used the purposive sampling method, producing a sample of 104 data which was analyzed using WarpPLS 8.0. Based on the research results, tax minimization has a direct influence on transfer pricing, while the bonus mechanism has no influence on transfer pricing and the audit committee cannot moderate the influence of both on transfer pricing. The implications of this research emphasize the importance of companies paying attention to their tax and transfer pricing policies as part of a general risk management and compliance strategy to prevent potential abuse or tax compliance risks.

Exploring U.S. retailers’ merchandising strategies for adaptive clothing: a focus on product assortment and pricing practices

ABSTRACT With society’s increasing call for more inclusivity in the fashion industry, adaptive clothing, designed for people with disabilities (PWD), has rapidly emerged as a critical and high-potential product category for U.S. retailers. By analysing thousands of clothing items in the market from 2018 to 2022 at the Stock Keeping Unit level, this study analysed U.S. retailers’ merchandising strategies for adaptive clothing. The logistic regression revealed that, statistically, adaptive clothing in the U.S. retail market looked more ‘boring’ and exhibited lower availability in several categories, including dresses, outerwear & suits, and underwear. Also, compared with nonadaptive ones, adaptive clothing statistically was more likely to be priced higher than the market average. The findings generated critical new knowledge about the business aspect of adaptive clothing by adding a valuable retailers’ perspective. The results also call for efforts to make adaptive clothing more diverse in product categories and financially affordable to PWD.

Climate Change Effects on Socio-Demographic Outcomes as Mediated by Bride Price Practices: A Review

Climate Change Effects on Socio-Demographic Outcomes as Mediated by Bride Price Practices: A Review

Exploring Determinants of Transfer Pricing Practices Among Romanian Publicly Traded Companies

Abstract This paper explores the effect of determinants shaping the landscape of transfer pricing practices within intra-group transactions among publicly traded companies in Romania over the period 2022. The research hypothesis focuses on identifying the variables that have a significant impact on transfer pricing in the Romanian business environment. Data collection was conducted manually from various sources, including explanatory notes from annual reports and databases such as Thomson Reuters and Bloomberg. The results reveal that the size of companies, sales, capitalization, foreign ownership, sales growth, and operational profit collectively contribute to the influence on transfer pricing practices. However, individual analysis shows that only sales significantly affect the transfer pricing practice.

A Review of the Phenomenon of Algorithm-facilitated Systematic Price Discrimination

As the Internet environment has rapidly developed, algorithms and programs have contributed to an ever-increasing level of convenience in day-to-day life. However, it is of the utmost importance to put an end to discriminatory pricing practices that are brought about by improper application of algorithms. Some retailers employ a strategy known as algorithmic price discrimination in order to boost their profits; nevertheless, this strategy has unfavorable effects on both the consumers' right to privacy and the reputation of the Internet. In order to achieve social and economic justice, it is essential and urgent to do away with algorithmic price discrimination. The purpose of this study is to have a better understanding of the current situation of algorithmic price discrimination by analyzing its history and discussing it. In addition, the research offers actions that authorities can take and measures that might be implemented in order to combat algorithmic price discrimination.

The impact of consumer expectations and familiarity on deceptive pricing in advertising: a view from drip pricing practice

Drip pricing practice, which involves promoting a seemingly low initial price and then introducing add-on price components without upfront disclosures, is commonly seen as a deceptive advertising practice that can lead to negative associations. Here, we provide an alternative perspective by investigating that whether consumers form positive or negative opinions about drip pricing depends on their expectation of encountering it and their overall familiarity with this practice. That is, this research reveals that when consumers’ general familiarity with drip pricing is low, higher expectations of drip pricing create greater perceptions of price fairness and purchase intentions. Moreover, our findings indicate that higher consumer expectations of drip pricing lead to positive attributions and evaluations of the detailed pricing information, resulting in higher perceptions of price fairness, which, in turn, increases purchase intentions. Further, we show that when consumers have high expectations of encountering drip pricing, they evaluate ­pricing information more positively and deception less harshly, resulting in greater purchase intentions than when they do not expect it.

Pengaruh Tax Minimization dan Audit Tenure Terhadap Transfer Pricing

This research was conducted to determine the effect of tax minimization and audit tenure on transfer pricing with firm size as a moderating variable carried out on manufacturing companies listed on the Indonesia Stock Exchange for the 2017-2021 period. The sample used in this research was selected using a purposive sampling method based on several predetermined criteria and resulted in 23 company samples with 115 observation data. The data analysis method uses panel data regression analysis which is tested using Eviews 12 software. The hypothesis testing method uses a significance level of 5%. The research results show that only the audit tenure variable is proven to have a negative influence on the company's decision to carry out transfer pricing practices, while the tax minimization variable has no effect on the company's decision to carry out transfer pricing practices.

The impact of transfer pricing and thin capitalization on tax avoidance in the advertising, printing, media, wholesale trade, and production of goods listed on the Indonesia Stock Exchange during the 2020 – 2022 period

One of the revenues received by a country comes from tax payments. However, some people consider taxes a burden, which becomes a reason to engage in tax avoidance practices. This research aims to identify the impact of transfer pricing practices and minimal capital use on tax avoidance efforts in the advertising, printing, media, wholesale trade, and goods production subsectors during the 2020-2022 period. This quantitative research method collects secondary data from companies listed on the Indonesia Stock Exchange (BEI) annual reports. This data was obtained from official sources, including the company's official website and the IDX website, and succeeded in collecting a sample of 30 companies. Data was analyzed using multiple linear regression and IBM SPSS Statistics 25 software. The research results show that setting transfer prices and using minimal capital significantly influences tax avoidance efforts in the advertising, printing, media, wholesale trade, and goods production subsectors. Listed on the Indonesian Stock Exchange during the 2020-2022 period. These findings have important implications, emphasizing the importance for all parties concerned to comply with tax obligations without trying to avoid them.

Transfer pricing in Indonesia: Do managers still utilize it as an effective strategy?

This research aims to find out and analyze the effect of the bonus mechanism, tunneling incentive, and exchange rate on company decisions to perform transfer pricing practices in 35 manufacturing and mining sector companies listed on the Indonesia Stock Exchange for the 2018–2020 period. The population of this research is used in the manufacturing and mining sectors listed on the Indonesia Stock Exchange (IDX). This research is a type of quantitative research using secondary data in the form of the company’s annual report and financial statement. The Random Effect Model (REM) with panel data regression was used in this study using STATA version 16. Based on the test results and analysis, it can be concluded that the bonus mechanism has a significant positive effect on transfer pricing, the exchange rate has a significant negative effect on transfer pricing, and the tunneling incentive has no effect on transfer pricing.

Transfer pricing practices in multinational corporations and their effects on developing countries' tax revenue: a systematic literature review

PurposeFor many global firms and corporate oligopolies, transfer pricing is essential. The transfer pricing literature as it is currently written is succinctly summarized in this study. The authors offer a thorough analysis of transfer pricing research in this study. This review sheds light on the top researchers, approaches, conclusions, theoretical and empirical gaps, and upcoming issues of transfer pricing research over the previous nine years through a methodical analysis of 29 research publications from the Scopus database (2014–2022). To help graduate students pursue further degrees in this area, such as a master's, thesis or PhD, this study will highlight five research issues.Design/methodology/approachThis essay looks at five significant areas of tax avoidance and transfer pricing research. Some of these issues include determining the impact of transfer pricing regulations on various types of multinational corporations, assessing the effectiveness of transfer pricing regulations in preventing tax evasion, examining various policy options and determining the impact of transfer pricing on other economic outcomes using a systematic literature review.FindingsThe findings of this review demonstrate the need for transfer pricing research to look more closely at transfer pricing as a tool for business in addition to compliance and tax management.Originality/valueThis analysis concludes with future directions for transfer pricing research.

Pricing for Water Conservation and Equity Consideration: The Case of Texas

Water utility providers in Texas have been trying to coordinate demand for and supply of water to ensure a stable source of water given the state’s recent rapid population growth and persistent drought-like conditions. Their efforts, however, vary across municipalities throughout Texas. The paper provides a broad analysis of pricing practices in 423 municipalities across Texas from 2014 to 2020 and their impact on residential water consumption. We also assess how other socio-demographic and climatic conditions may influence water use and water rates decisions across municipalities. Besides investigating the potential determinants of water demand, the paper also looks at several supply-side variables and the income gap to address the endogeneity of water block prices. Our results shed light on how current water pricing practices in Texas incorporate aspects of the Integrated Water Management Practices that have been shaping water management for decades.

Unraveling transfer pricing in construction sectors: Tax optimization, compliance, and environmental risk

This study highlights the consequence of tax optimization, regulatory compliance, and environmental risk index on the likelihood of transfer pricing in Indonesia's property, real estate, and building construction sectors. This study adopts a quantitative research approach, analyzing data from 19 companies in the property, real estate, and building construction sectors listed on the Indonesia Stock Exchange (IDX) between 2018 and 2021 (76 observations). This study contributes novelty by employing binary logistic regression to investigate the interaction of tax optimization, regulatory compliance, and environmental risk index on transfer pricing in Indonesia's property, real estate, and building construction sectors, providing valuable insights into the determinants of transfer pricing practices in these industries. The research employs multiple linear and binary logistic regression to examine the influence of tax optimization, regulatory compliance, and environmental risk index on transfer pricing likelihood. - Tax optimization and regulatory compliance significantly impact the likelihood of Transfer Pricing in the property, real estate, and building construction sectors in Indonesia. However, the interaction between tax optimization and the environmental risk index does not significantly influence transfer pricing likelihood. In contrast, the interaction between regulatory compliance and the environmental risk index does have a significant positive effect. The implications are that tax optimization may subtly influence transfer pricing in the studied sectors. Maintaining regulatory compliance appears to act as a deterrent, and a favorable environmental risk index may encourage transfer pricing practices in Indonesia's property, real estate, and building construction industries.

Predatory Pricing for E-Commerce Businesses from a Business Competition Law Perspective

Purpose: Predatory pricing is a business strategy where prices are cut by a lot to get rid of competitors and take over the market. With the digital economy growing so quickly, this method is becoming more and more important for e-commerce companies. The goal of this study is to look at the problem of unfair pricing in e-commerce businesses from the point of view of business competition laws.
 
 Theoretical framework: This study will look at the problems with predatory pricing practices in E-Commerce companies and E-Commerce businesses.
 
 Method: In this study, a conventional legal method is used, and a literature review is used to look at secondary sources of data.
 
 Result: The results of the study show that when it comes to e-commerce in Indonesia, predatory pricing strategies like giving big discounts might help consumers right away by making prices very low. But this can make business competition unfair by causing other businesses to leave the market and stopping new businesses from coming in. Law No. 5 of 1999 forbids trading practices at a loss that hurt the public interest, especially if they are done dishonestly, against the law, or in a way that hurts business competition.
 
 Conclusion: Because of this, predatory pricing methods like these need to be closely controlled, and anyone who feels like they've been cheated should be able to tell the right people. This group has the power to punish businesses that break the rules with administrative or criminal penalties. This ensures that the Indonesian e-commerce business ecosystem is healthy and fair.Top of Form

The Influence of Salaries, Production Costs and Tax Costs on Transfer Pricing in Companies Registered at Bureau Van Dijk-Osiris In 2022

This study aims to determine the influence of Salary Expenses, Production Costs and Tax Expenses partially and simultaneously on Transfer Pricing, while the object of this study is a multinational company (Tbk) which is listed on the Van Dijk-Osiris Bureau 2022. Salary has a positive relationship to Transfer Pricing, so Salary Expense has no effect on Transfer Pricing which illustrates that when Salary Expense increases then Transfer Pricing practice decreases. This study aims to determine the influence of Salary Expenses, Production Costs and Tax Expenses partially and simultaneously on Transfer Pricing, while the object of this study is a multinational company (Tbk) that is listed on the Van Dijk-Osiris Bureau 2022. Salary has a positive relationship to Transfer Pricing, so Salary Expense has no effect on Transfer Pricing which illustrates that when Salary Expense increases then Transfer Pricing practice decreases. Production Costs have a positive relationship to Transfer Pricing, but the value is relatively small below 0.5 so the results of the Hypothesis test show that the Production Costs variable has no effect on Transfer Pricing which illustrates that when Production Costs increase, Transfer Pricing practices decrease. Tax Fees have a negative relationship to Transfer Pricing while the results of the hypothesis test show a significance value greater than 0.05, that Tax Fees have no effect on Transfer Pricing which illustrates that when Tax Expenses increase then Transfer Pricing practices will be low.

Transfer Pricing, Social Factors and Financial Performance of Universal Companies in Nigeria

Research into transfer pricing and the variables influencing its prevalence and scope in a setting such as Nigeria, a developing country, is fascinating. Understanding these elements is crucial for regulatory agencies in Nigeria or other developing nations to effectively monitor businesses and their transfer pricing operations. This study then examined transfer pricing, social factors and financial performance of universal companies in Nigeria. The study was predicated on agency theory to assess the conflict of interest that arises amidst the investors and executives over the practice of transfer pricing. Eighteen (18) listed universal companies were sampled. Panel regression technique was used to analyse the hypothesis to arrive at interpretable findings. The independent variables were board size, board independence and related party transactions while the dependent variable was return on assets. The control variables were firm size and leverage. Findings showed only RPT were not significantly associated with financial performance. However, the overall model was significant as revealed by the p-value of 0.000215 which is less than 0.05. It can be concluded that transfer pricing and social factors identified in this study have explanatory power to influence the financial performance of universal companies in Nigeria.As a result, it is recommended that regulators should expand their rules to increase the disclosure of transfer pricing practices by universal listed companies, and to expand controls and monitoring over transfer pricing in companies through improving corporate governance mechanisms, including increasing the power of smaller shareholders and independent board members in approving such transactions.

THE EFFECT OF TAX BURDEN, FOREIGN OWNERSHIP, INTANGIBLE ASSETS AND BONUS MECHANISM ON TRANSFER PRICING

In Indonesia, a country with a significant mining industry and a dynamic stock exchange, transfer pricing decisions among mining companies have become a subject of interest. These decisions involve determining the prices at which related entities within the same multinational corporation trade with each other. The complexity arises from the potential discrepancies between market prices and the prices set for intra-company transactions. This study aims to investigate the impact of Tax Burden, Foreign Ownership, Intangible Assets, and Bonus Mechanism on Transfer Pricing Decisions among Indonesian mining firms listed on the Stock Exchange from 2017 to 2021. Using purposive sampling, six mining companies were selected as the research sample. Employing Panel Data Regression Analysis via Eviews 9 software at a 5% significance level, the study finds that collectively, the independent variables significantly influence companies' choices for transfer pricing, as indicated by the F-test (F-statistic value = 13.07910, F-table value = 2.759). Regarding individual variables, Tax Burden lacks significant influence (p-value = 0.3819), while Foreign Ownership negatively impacts transfer pricing decisions (p-value = 0.002, t-statistic = -3.503829). Intangible Assets (p-value = 0.8969) and Bonus Mechanism (p-value = 0.6290) also do not significantly influence transfer pricing. The study concludes that investors should cautiously analyze company policies due to varied motivations for transfer pricing, and recommends government review of policies to curb detrimental transfer pricing practices. The limited number of multinational mining companies and scarce information on their transfer pricing practices are study limitations.

Excessive Pricing in Pharmaceuticals under Article 102 TFEU

AbstractHigh pharmaceutical pricing practices in Europe have been increasingly on the radar of the European Union, academia and civil society as a risk to Member State health budgets. It is therefore hardly surprising that, in recent years, competition authorities have resuscitated the excessive pricing prohibition contained in Article 102(a) TFEU. Focusing on this phenomenon, this piece highlights the diverse ways in which the United Brands test has been applied in pharmaceuticals by conducting a comparative study of the decisional practice of national competition authorities. Several observations and arguments are then derived therefrom, demonstrating that, while difficult (most notably in respect to patent-protected products), competition authorities and courts have established sophisticated ways of determining whether a pharmaceutical price is excessive in the sense of Article 102(a) TFEU. These findings should encourage hesitant competition authorities and private plaintiffs to at least carry out preliminary investigations when they suspect excessive pricing in pharmaceuticals is taking place.

The role of the business competition supervisory commission in response to allegations of predatory pricing practices in e-commerce

The presence of E-Commerce provides various conveniences, one of which is the ease of exporting and importing goods, as E-Commerce is a trade that has no geographical boundaries. However, because of this, there are allegations of predatory pricing practices in E-Commerce that have caught the attention of the government, as they can cause losses for other businesses and consumers. The allegations involve the discovery of imported products being sold at much lower prices than local products. Nevertheless, not all actions can be considered as prohibited predatory pricing practices, there is a need for advidence or assessment to be conducted by the Business Competition Supervisory Commission (KPPU). This study utilizes normative juridical research. The result of this study is that preatory pricing practices are prohibited under Article 20 of Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition, where a matter can be considered a prohibited predatory pricing practice if it fulfills the elements stated in Article 20. In the case of allegations of predatory pricing practices in E-Commerce, The KPPU can also impose administrative sanctions on businesses proven to engage in prohibited predatory pricing practices under competition law.

The Role of Tunneling in Doing Transfer Pricing

Transfer pricing practices carried out by companies by shifting profits from countries with high tax rates to countries with low tax rates, so as to minimize the tax burden in an effort to maximize company profits. In fact, tax revenue on income from multinational companies is a very significant part of tax revenues in the total tax revenues in the countries where these multinational companies operate. This study aims to determine the effect of profitability and taxes on transfer pricing with tunneling as a moderation variable. The study used secondary data as many manufacturing companies listed on the Indonesian Stock Exchange in 2019-2022. Sample selection using purposive sampling method which resulted in 40 manufacturing companies. This study used linear regression analysis with SPSS tools. The results of this study show that profitability and taxes have a significant positive effect on transfer pricing. Furthermore, tunneling is able to moderate the effect of profitability and taxes on transfer pricing.

Policy and Practices of Initial Public Offering Share Pricing in Nepal

This paper aimed at swotting policies and practices of initial public offering share pricing in Nepal. The paper employed the data from both primary and secondary sources like policy documents issued by SEBON related to the pricing of IPO shares and opinion surveys with the market participants about whether existing pricing policies are appropriate to adopt new pricing of IPO like book building. Data has been analyzed using descriptive statistics. Review of various policy documents like Companies Act 2006, Securities Act 2006, and Securities Registration and Issue Regulation 2016 revealed that IPO pricing prevailing in Nepal are related to the fixed price public offer mechanism. Issuance of IPO shares in premium is occasionally found in practice while there is a restriction of IPO of shares at discount under fixed-price public offer. There is high initial returns or deeper underpricing of IPOs under fixed-price public offer. The provision of free pricing like auction pricing of IPO shares is not found in the regulations. In this regard, market participants opined that the existing regulatory provisions are insufficient and supposed to not appropriate for launching the book building pricing method of IPO share in Nepal. In later period, it is found that SEBON initiated amendment of Securities Registration and Issue Regulation 2016 with provisions of book building pricing on February 13, 2020, and also brought about Book Building Directives 2020, aiming to implement book building pricing of IPOs. However, no companies are yet to go public through book-building pricing so far.