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- W1489720664 abstract "Top management of a multi-divisional firm faces the challenge of striking a balance between providing autonomy to divisional managers and retaining some level of control to prevent dysfunctional behavior of divisional managers. There is little empirical evidence on how top management makes this trade-off. In this study, we draw on agency theory to develop a model of the determinants of divisional autonomy in transfer pricing and provide empirical evidence on this issue. We predict that divisional autonomy in transfer pricing is influenced by intermediate product standardization, foreign investment, tax rate difference, and the design of divisional managers’ performance evaluation system. Using data collected from a cross-sectional survey of 210 divisional managers, we find results consistent with our predictions. We also predict and find that the extent of mismatch between divisional autonomy and organizational characteristics leads to lower satisfaction, perceived fairness, and perceived transfer pricing effectiveness by divisional managers." @default.
- W1489720664 created "2016-06-24" @default.
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- W1489720664 date "2013-01-01" @default.
- W1489720664 modified "2023-09-26" @default.
- W1489720664 title "Determinants and Consequences of Delegation in Transfer Pricing: An Empirical Investigation" @default.
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- W1489720664 doi "https://doi.org/10.2139/ssrn.2225293" @default.
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