INTEGRATED ASSESSMENT AND MODELLING OF TRANSFER PRICING EFFICIENCY AS A MECHANISM FOR FINANCIAL REGULATION OF ENTERPRISES’ FOREIGN ECONOMIC ACTIVITY
DOI:
https://doi.org/10.35774/Keywords:
transfer price, controlled transactions, composite index, financial regulation, Analytic Hierarchy Process, scenario analysis, IDEF0, tax administration.Abstract
Introduction. The study addresses the need to improve the assessment of transfer pricing (TP) effectiveness as a financial regulation mechanism for enterprises’ foreign economic activity (FEA) in Ukraine.
The purpose of the article is to develop an integrated approach to assessing and modelling TP effectiveness by considering the combined influence of financial, institutional, organisational, and regulatory instruments.
Results. The study employs a systems approach, systematisation, grouping, structural and logical analysis, indicator normalisation based on reference values, the Analytic Hierarchy Process (AHP), scenario modelling, and IDEF0 functional modelling.
An integrated Transfer Pricing Effectiveness Index is developed, combining four sub-indices that characterise the financial, regulatory, institutional, and organisational components of TP. Scenario modelling enables quantitative assessment of changes in the integrated index in response to changes in individual components and supports the identification of priority areas for managerial intervention. The IDEF0 model formalises the transition from TP effectiveness assessment through analytical modelling and forecasting to the formulation and implementation of managerial decisions, with feedback enabling repeated assessment.
Conclusions. The theoretical contribution consists in integrating quantitative assessment, scenario analysis, and functional modelling within a unified analytical framework. The practical significance lies in identifying problematic components and justifying improvement measures.
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