08 Články v časopisoch

Trvalé URI pre túto kolekciu

Teraz sa zobrazuje 1 - 1 z 1

Factors of credit ratings for transfer pricing of loans in European conditions
(Nakladatelství Oeconomica, Vysoká škola ekonomická : Praha, 2024) Boďa, Martin; Brychta, Karel; Ištok, Michal; Solilová, Veronika
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 tax-acceptable approach to pricing of financial transactions between unrated parties (i.e., without credit rating) should preferably exploit interest coverage as a link to the otherwise missing ratings.