Jan Thomas Martini

TL;DR: In this article, the impact of different international tax allocation regimes on a corporate group's investment and production decisions is analyzed, and it is shown that FA offsets the advantages of decision decentralization as it reverses the separation of responsibilities.

TL;DR: In this article, the impact of different combinations of tax allocation and managerial accounting regimes on investment and production decisions of an MNC was analyzed, and it was shown that TP affects the production decision, so that a frequently cited advantage of TP does not hold true.

TL;DR: In this paper, the impact of different international tax allocation regimes on the MNG's investment and production decisions is analyzed, and it is shown that FA is more harmful than transfer pricing because under FA income shifting would require changing economic decisions instead of just taking advantage of accounting options.

TL;DR: In this paper, a transfer price is either negotiated between the divisions before (ex ante) or set by headquarters after (ex post) divisional activities have been decided, and the corresponding divisional profits are analyzed.

TL;DR: In this paper, the authors examine the influence of transfer prices on managerial decisions and determining corporate taxes in a multinational firm. And they demonstrate that a policy of negotiated transfer pricing, under which the divisions exploit their superior information but select the transfer price to maximize the firm's pre-tax profit, is the firm’s optimal organizational choice if the high-tax division's productivity is high.