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Financial Analytics: Science and Experience
 

Influence of the internal corporate economy model on transfer pricing functions and methods

Vol. 8, Iss. 40, OCTOBER 2015

PDF  Article PDF Version

Received: 3 September 2015

Accepted: 1 October 2015

Available online: 4 November 2015

Subject Heading: Economic policy

JEL Classification: 

Pages: 21-36

Ustyuzhanina E.V. Plekhanov Russian University of Economics, Moscow, Russian Federation
dba-guu@yandex.ru

Komarova I.P. Plekhanov Russian University of Economics, Moscow, Russian Federation
komarik_ira@mail.ru

Evsyukov S.G. Central Economics and Mathematics Institute of Russian Academy of Sciences, Moscow, Russian Federation
sg-7777@yandex.ru

Importance Business consolidation and diversification trends require regulating internal corporate relationships. Corporate resources are distributed and reallocated within the company through intracompany transactions and various economic indicators. Economic indicators play absolutely different roles in different corporate economy models. In such circumstances, corporate relationship regulation gains relevance, considering the relation of corporate economic environment forms and applicable economic indicators.
     Objectives The research is aimed at devising the general concept for arranging internal transactions and applying economic indicators to various models of the corporate economic environment.
     Methods Organizing a corporate economy falls in between management and economics, thus requiring us to combine methodologies of several theories, i.e. organization theory (management and new institutional theory), transaction cost theory (new institutional theory), pricing theory (neoclassical economic theory), theory of budgetary planning theory and controlling (finance) and economic theory of law (new institutional theory).
     Results We found principal models of corporate economy and their key qualities and determined functions, calculation techniques and scope of basic economic indicators in various corporate economy models.
     Conclusions and Relevance When calculating and using some economic indicators, it is necessary to consider their role in distributing and reallocating resources and products within the specific corporate economy model. Hence, when forming the corporate economic environment, companies should opt for integral concepts, i.e. operational models, rather than separate management tools.

Keywords: corporation, division, corporate economy model, economic indicator, pricing method

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