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Stručni rad
https://doi.org/10.30924/mjcmi.25.2.16

Dysfunctionality of two-part transfer pricing in investment centers' performance assessment

Liudmila A. Guzikova   ORCID icon orcid.org/0000-0002-0925-1565 ; Peter the Great St. Petersburg Polytechnic University, Saint-Petersburg, Russia
Igor A. Nechitaylo   ORCID icon orcid.org/0000-0002-3966-968X ; Peter the Great St. Petersburg Polytechnic University, Saint-Petersburg, Russia

Puni tekst: engleski, pdf (1 MB) str. 291-304 preuzimanja: 294* citiraj
APA 6th Edition
Guzikova, L.A. i Nechitaylo, I.A. (2020). Dysfunctionality of two-part transfer pricing in investment centers' performance assessment. Management, 25 (2), 291-304. https://doi.org/10.30924/mjcmi.25.2.16
MLA 8th Edition
Guzikova, Liudmila A. i Igor A. Nechitaylo. "Dysfunctionality of two-part transfer pricing in investment centers' performance assessment." Management, vol. 25, br. 2, 2020, str. 291-304. https://doi.org/10.30924/mjcmi.25.2.16. Citirano 26.10.2021.
Chicago 17th Edition
Guzikova, Liudmila A. i Igor A. Nechitaylo. "Dysfunctionality of two-part transfer pricing in investment centers' performance assessment." Management 25, br. 2 (2020): 291-304. https://doi.org/10.30924/mjcmi.25.2.16
Harvard
Guzikova, L.A., i Nechitaylo, I.A. (2020). 'Dysfunctionality of two-part transfer pricing in investment centers' performance assessment', Management, 25(2), str. 291-304. https://doi.org/10.30924/mjcmi.25.2.16
Vancouver
Guzikova LA, Nechitaylo IA. Dysfunctionality of two-part transfer pricing in investment centers' performance assessment. Management [Internet]. 2020 [pristupljeno 26.10.2021.];25(2):291-304. https://doi.org/10.30924/mjcmi.25.2.16
IEEE
L.A. Guzikova i I.A. Nechitaylo, "Dysfunctionality of two-part transfer pricing in investment centers' performance assessment", Management, vol.25, br. 2, str. 291-304, 2020. [Online]. https://doi.org/10.30924/mjcmi.25.2.16

Sažetak
The paper discusses the question of the ability of the two-part transfer pricing system to stimulate investment centers to reject projects with positive NPV and to accept projects with negative NPV when there is no external market for intermediate products. The study revealed under which circumstances investment centers can take such dysfunctional decisions and it investigated if these systems can be modified to eliminate negative effects of such circumstances. In order to solve these problems, methods of financial analysis, real options theory and theory of constraints were used and several hypothetical business situations were modelled to exemplify possible dysfunctional behavior of investment centers when strategic decisions are taken in a decentralized manner. The paper considers the reasons for taking such decisions, such as using average rates of resource costs in calculating the transfer payment, presence of the real options in related projects complex and breaking the five focusing steps of the theory of constraints.

Ključne riječi
transfer price; two-part transfer pricing system; decentralization; investment center; economic profit; real option

Hrčak ID: 247344

URI
https://hrcak.srce.hr/247344

Posjeta: 504 *