The Transfer Prices In The Earnings Management Of MNCs

Along with the great development in economy all over the world,economical life is becoming more and more internationalized, collective and integrative. Transnational corporations always use the Transfer Price as the major method to carry out their global operating strategy. The aim of this article is to analyse the relationship between the usage and specialty of the Transfer Price and carrying out the Earning Management Strategy appropriately. On the other hand, the writer also hopes to help Chinese companies to recognize the advertages and disadvertages of the Transfer Price.