Advances In Management

Indexed in SCOPUS, Chemical Abstracts Services, UGC, NAAS and Indian Citation Index etc.



Advances In Management






Vol. 10(2) February 2017

Transfer pricing in global business and ethical issues

Habibullah Munira

Business ethics are the accepted principles of right or wrong that govern the conduct of business transaction. An ethical strategy is a course of action that does not violate these accepted principles. Ethics are an important part of the business environment and the business corporations assume ethical responsibilities. International managers carry the heavy task of formulating organizational policies and standards by combining the law, the ethical business principles, the local cultural values and the organizational standards. The ethics from this perspective ask for the managers’ catalyst role to take fair actions from a social point of view representing a guide in making and evaluating the business decisions. Transfer pricing is the setting of the price for goods and services sold between controlled (or related) legal entities within an enterprise. Legal entities considered under the control of a single corporation include branches and companies that are wholly or majority owned ultimately by the parent corporation. Transfer pricing results in the setting of prices among divisions within an enterprise. In principle, a transfer price should match either what the seller would charge an independent, customer, or what the buyer would pay an independent arm's length supplier. While unrealistic transfer, prices do not affect the overall enterprise directly, they become a concern when they are misused to lower profits in a division of an enterprise that is located in a country that levies high taxes and raise profits in a country that is a tax haven that levies no or low taxes. Transfer pricing is the major tool for corporate tax avoidance referred to as profit shifting. The paper addresses the ethical issues arising and resulting with use of transfer pricing

Full Text

Split Impact on Companies Share Price

Khatri Namrata N.

A stock split refers to the division of stock. It may either be split forward or in reverse. Stock split is the technique of psychological pricing where new prices are more attractive to the incoming retail investors. This paper focuses to study the effect of share split on company day to day return and to study the fluctuation in return of the shares of the selected companies during the pre-split and post-split. The data for the study is secondary and the analysis of the data is done by using statistical technique like t- test. The analysis of the data reveals that p-value of six companies is significant and there is significant difference in mean return before and after split.

Full Text