Transfer Pricing And Performance Evaluation Of Enterprise Groups

The profound changes of world economic environment and conditions led to the development and expansion of enterprise groups. The wide application of decentralized management of the internal organization of enterprise groups and growing of related transactions resulted in performance evaluation and transfer pricing issues. Transfer pricing not only links inextricably with the performance evaluation, but also can affect strategic decisions of enterprise groups, optimize resource allocation and saving transaction costs. In short, transfer pricing plays an important role on the enterprise group. Therefore a comprehensive analysis of the impact factors of transfer pricing and exploring transfer pricing method which makes the largest overall interests of the enterprise groups and contributes to the performance evaluation and incentive mechanism have important theoretical and practical significance for strategic management and operating decisions of the enterprise group.In this paper, we combined specification and empirical research methods, use logical reasoning and comparative study, use management, marketing and management accounting integrately and other disciplines, draw on knowledge of other related supplement theory. The article is based on pricing theory, analysis and description the influence on the performance evaluation and strategic decisions of the transfer pricing of enterprise group, has a comprehensive overview of the various factors of transfer pricing, use the mathematical methods of uncertainty to construct the calculation model under uncertainty of transfer pricing, set up the whole idea of the transfer pricing system of enterprise groups, made a good suggestion for the transfer pricing decision-making of enterprise groups in China.