Table 3 Relationship between transfer... | Emerald Publishing

Table 3

Relationship between transfer pricing and tax avoidance/profit shifting

Author	Methodology	Finding	Theoretical gap	Empirical gap	Problem
Büttner and Thiemann (2017)	Historical analysis, theoretical framework, and empirical research	The OECD/G20 Base Erosion and Profit Shifting (BEPS) procedure modified the Hedging Guidelines to reduce profit shifting without political risk			Analyzing the impact of the OECD/G20 BEPS process on the global tax system
Richardson and Taylor (2015)	Regression analysis, multicollinearity check, and robustness check	Multinationalism, thin capitalization, aggressive transfer pricing, intangible assets, and tax haven use positively correlate with listed U.S. MNCs, suggesting profit-shifting strategies			Investigating the presence of profit-shifting strategies in U.S. listed MNCs
Sari et al. (2022)	Quantitative research and multiple linear regression analysis	Intangible assets affect transfer pricing decisions regardless of taxes			Assessing the impact of intangible assets on transfer pricing decisions
Amidu et al. (2019)	Regression analysis	During 2008–2015, most sample enterprises used transfer pricing and profits management to evade taxes			Exploring the relationship between transfer pricing, tax avoidance, and profit shifting
Park et al. (2016)	Regression analysis	MNCs that have increased worldwide diversification by creating overseas subsidiaries tend to have a larger propensity to evade taxes	Only Korean companies are the subject of the investigation	All financial information used in the study is openly accessible	Investigating the relationship between tax evasion and MNCs' establishment of foreign subsidiaries

Author	Methodology	Finding	Theoretical gap	Empirical gap	Problem
Büttner and Thiemann (2017)	Historical analysis, theoretical framework, and empirical research	The OECD/G20 Base Erosion and Profit Shifting (BEPS) procedure modified the Hedging Guidelines to reduce profit shifting without political risk			Analyzing the impact of the OECD/G20 BEPS process on the global tax system
Richardson and Taylor (2015)	Regression analysis, multicollinearity check, and robustness check	Multinationalism, thin capitalization, aggressive transfer pricing, intangible assets, and tax haven use positively correlate with listed U.S. MNCs, suggesting profit-shifting strategies			Investigating the presence of profit-shifting strategies in U.S. listed MNCs
Sari et al. (2022)	Quantitative research and multiple linear regression analysis	Intangible assets affect transfer pricing decisions regardless of taxes			Assessing the impact of intangible assets on transfer pricing decisions
Amidu et al. (2019)	Regression analysis	During 2008–2015, most sample enterprises used transfer pricing and profits management to evade taxes			Exploring the relationship between transfer pricing, tax avoidance, and profit shifting
Park et al. (2016)	Regression analysis	MNCs that have increased worldwide diversification by creating overseas subsidiaries tend to have a larger propensity to evade taxes	Only Korean companies are the subject of the investigation	All financial information used in the study is openly accessible	Investigating the relationship between tax evasion and MNCs' establishment of foreign subsidiaries

Source(s): Table created by author