EMPIRICAL INVESTIGATION OF RELATIONSHIP BETWEEN NON-ARM'S-LENGTH TRANSFER PRICING AND RELATED-PARTY TRANSACTIONS

Wen-Jye Hung ； Tsui-Lin Chiang ； Yi-Yin Ruan ； Wen-Yu Chen

《Advances in Quantitative Analysis of Finance and Accounting》 19期 (2022/12) Pp. 145-185

https://doi.org/10.6293/AQAFA.202212_(19).0005

摘要

We examine the relationship between non-arm's-length transfer pricing (NTP) and related-party transactions (RPTs) by using a sample of 23,837 firm-year observations from listed firms in China from 2006 to 2018. We reveal that NTP is significantly and positively correlated with purchase RPTs and negatively correlated with nonoperating RPTs but not correlated with contingent RPTs. Moreover, we demonstrate that foreign shareholding mitigates the effect of NTP on complex RPTs, sales RPTs, and purchase RPTs. Finally, we divide listed enterprises into state-owned enterprises (SOEs) and privately owned enterprises. The empirical results indicate that SOEs conduct more RPTs than privately owned enterprises.

關鍵字

Related-Party Transactions ； Non-Arm's-Length Transfer Pricing ； State-Owned Enterprises

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