Factors of Credit Ratings for Transfer Pricing of Loans in European Conditions

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F44555601%3A13510%2F24%3A43898916" target="_blank" >RIV/44555601:13510/24:43898916 - isvavai.cz</a>

Alternative codes found

RIV/61384399:31110/24:00060626

Result on the web

<a href="https://polek.vse.cz/artkey/pol-202405-0001_factors-of-credit-ratings-for-transfer-pricing-of-loans-in-european-conditions.php" target="_blank" >https://polek.vse.cz/artkey/pol-202405-0001_factors-of-credit-ratings-for-transfer-pricing-of-loans-in-european-conditions.php</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18267/j.polek.1421" target="_blank" >10.18267/j.polek.1421</a>

Result language

angličtina

Original language name

Factors of Credit Ratings for Transfer Pricing of Loans in European Conditions

Original language description

In accord with international transfer pricing regulations, the borrower&apos;s creditworthiness is the main factor to be reflected in valuation of cross-border loan transactions between associated enterprises. However, trouble invariably arises for small and medium-sized enterprises that do not have an assigned credit rating. The aim of this paper is to determine the most reliable predictors of a company&apos;s credit rating for European entities facing missing rating coverage for the purpose of transfer pricing. Based on 2015-2019 data sourced from the Orbis database, the study examines key financial ratios and non-financial information that could be instrumental in reconstructing a long-term rating category of a company assigned by Moody&apos;s Investors Service. The results identify interest coverage as the most useful predictor. Therefore, a law-approved and taxcredit rating) should preferably exploit interest coverage as a link to the otherwise missing ratings.

Czech name

—

Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Politická ekonomie

ISSN

0032-3233

e-ISSN

—

Volume of the periodical

72

Issue of the periodical within the volume

5

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

25

Pages from-to

727-751

UT code for WoS article

001332091300001

EID of the result in the Scopus database

2-s2.0-85206939092