Factors of Credit Ratings for Transfer Pricing of Loans in European Conditions
Identifikátory výsledku
Kód výsledku v 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>
Nalezeny alternativní kódy
RIV/61384399:31110/24:00060626
Výsledek na webu
<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>
Alternativní jazyky
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.
Klasifikace
Druh
J<sub>imp</sub> - Článek v periodiku v databázi Web of Science
CEP obor
—
OECD FORD obor
50204 - Business and management
Návaznosti výsledku
Projekt
—
Návaznosti
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Ostatní
Rok uplatnění
2024
Kód důvěrnosti údajů
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Údaje specifické pro druh výsledku
Název periodika
Politická ekonomie
ISSN
0032-3233
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
2-s2.0-85206939092