Detail publikace

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

BOĎA, M. BRYCHTA, K. SOLILOVÁ, V. IŠTOK, M.

Originální název

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

Typ

článek v časopise ve Web of Science, Jimp

Jazyk

angličtina

Originální abstrakt

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.

Klíčová slova

Transfer pricing; credit ratings; predictors of creditworthiness; interest coverage; European companies

Autoři

BOĎA, M.; BRYCHTA, K.; SOLILOVÁ, V.; IŠTOK, M.

Vydáno

10. 10. 2024

Nakladatel

Prague Univ Economics and Business

Místo

PRAGUE 3

ISSN

2336-8225

Periodikum

POLITICKA EKONOMIE

Ročník

72

Číslo

5

Stát

Česká republika

Strany od

727

Strany do

751

Strany počet

25

URL

https://polek.vse.cz/artkey/pol-202405-0001_factors-of-credit-ratings-for-transfer-pricing-of-loans-in-european-conditions.php

Plný text v Digitální knihovně

http://hdl.handle.net/11012/250752

BibTex

@article{BUT193864,
  author="Martin {Boďa} and Karel {Brychta} and Michal {Ištok} and Veronika {Solilová}",
  title="Factors of Credit Ratings for Transfer Pricing of Loans in European Conditions",
  journal="POLITICKA EKONOMIE",
  year="2024",
  volume="72",
  number="5",
  pages="727--751",
  doi="10.18267/j.polek.1421",
  issn="2336-8225",
  url="https://polek.vse.cz/artkey/pol-202405-0001_factors-of-credit-ratings-for-transfer-pricing-of-loans-in-european-conditions.php"
}

Odpovědnost: Ing. Marek Strakoš