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

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F24%3APU155052" target="_blank" >RIV/00216305:26510/24:PU155052 - isvavai.cz</a>

Výsledek na webu

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

DOI - Digital Object Identifier

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

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

In accord with international transfer pricing regulations, the borrower'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'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'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.

Název v anglickém jazyce

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

Popis výsledku anglicky

In accord with international transfer pricing regulations, the borrower'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'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'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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50200 - Economics and Business

Projekt

<a href="/cs/project/TL05000328" target="_blank" >TL05000328: Stanovení obvyklé ceny u finančních transakcí náhledem principu tržního odstupu</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2024

Kód důvěrnosti údajů

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

Název periodika

POLITICKA EKONOMIE

ISSN

2336-8225

e-ISSN

—

Svazek periodika

72

Číslo periodika v rámci svazku

5

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

25

Strana od-do

727-751

Kód UT WoS článku

001332091300001

EID výsledku v databázi Scopus

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