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On the issue of improving the efficiency of financing of business entities and the transfer pricing

Vol. 25, Iss. 10, OCTOBER 2019

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Received: 28 June 2019

Received in revised form: 16 September 2019

Accepted: 30 September 2019

Available online: 30 October 2019


JEL Classification: D61, G32, O22

Pages: 2281–2303

Sheina E.G. Ural State University of Economics (USUE), Yekaterinburg, Russian Federation

Astanakulov O.T. Tashkent Institute of Finance (TIF), Tashkent, Republic of Uzbekistan

Subject This article examines the economic relations of economic entities regarding the formation and distribution of profit through the transfer pricing mechanism within a group of associated enterprises.
Objectives The article aims to show new approaches to the transfer pricing mechanism use in order to form and distribute the profit of business entities, including the self-help capabilities of holding structures, and small and medium-sized enterprises, as well.
Methods For the study, we used deductive reasoning and the methods of structural, logical, and content analyses.
Results The article classifies the business entities by range of activity and peculiarity of financial resources formation. It shows the role of transfer pricing as a tool for managing the profits of business entities and proves the hypothesis of possible mobilization of own financial resources in holding structures, as well as small and medium-sized enterprises through the transfer pricing mechanism.
Conclusions and Relevance The application of transfer pricing helps business entities improve the efficiency of financing, maintain financial stability and balance. The scope of the results helps reveal the financial problems of business entities and influence the financial outcome of their activities.

Keywords: sources of financing, profit, innovation, financial resources, business entities, transfer pricing, holding structure


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