Understanding Transfer Pricing Dynamics: Evidence from Related Party Transactions in EU Public Companies

Renata Fulop – Babeș-Bolyai University, Mihail Kogâlniceanu Street, No.1, 400084, Cluj-Napoca, Romania

Abstract: This research explores the determinants influencing transfer pric­ing practices within the EU business landscape, driven by rising related party transactions leading to significant fiscal scandals involving companies like McDonald’s France, BlackRock, and Maersk Oil and Gas in 2022. After an investigation into its transfer pricing arrangements, the US fast-food com­pany agreed to pay €1.25 billion to the French tax authority. All these cas­es underscore the gravity of the issue. Data was manually collected from annual reports and databases like Thomsons Reuters and Bloomberg, fo­cusing on companies across seven EU countries: France, Germany, Poland, Ireland, Hungary, the Netherlands, and Romania. Using multiple linear re­gression models, the study analyzes independent variables such as compa­ny size, leverage ratio, profitability, market to book ratio, controlling share­holders, and corporate income tax rate. The study aims to provide valua­ble insights into the factors shaping the concept, emphasizing the need for greater transparency, accountability, and trust in financial operations with­in the EU framework.

8th International Scientific Conference – EMAN 2024 – Economics and Management: How to Cope With Disrupted Times, Rome, Italy, March 21, 2024, SELECTED PAPERS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-84-4, ISSN 2683-4510, DOI: https://doi.org/10.31410/EMAN.S.P.2024

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

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