Transfer policy tools and factors affecting on their effectiveness

Horyslavets Pavlo
PhD in Economics, Associate Professor of Finance Department, Lviv Polytechnic National University, Ukraine, e-mail: pavlo.a.horyslavets@lpnu.ua, ORCID ID: https://orcid.org/0000-0002-1882-2104

Mukan Andrii
Postgraduate Student of Finance Department, Lviv Polytechnic National University, Ukraine, e-mail: andrii.r.mukan@lpnu.ua, ORCID ID: https://orcid.org/0009-0001-2955-4109

Cite this article:

Horyslavets, P., Mukan, A. (2023). Transfer policy tools and factors affecting on their effectiveness [Instrumenty transfertnoi polityky ta faktory vplyvu na yikh efektyvnist], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3-4 (86-87), pp. 88-97.

Abstract

The article is devoted to the substantiation of transfer policy tools and factors influencing on their effectiveness. Factors affecting on the transfer policy effectiveness are singled out. Using the method of Kendall’s correlation-regression analysis, the factors influencing the effectiveness of transfer policy tools are separated by significance. The most significant factors were resource potential, primary documentation and financial reporting, personnel potential, etc. However, such factors as contract terms and transfers of dividends, commission payments, and technology payments have the least impact. With the aim of transfer policy tools improving, it is proposed to develop a unified structure of primary documents and financial reporting. At the same time, in this structure it is advisable to: to review the distribution of powers between the subjects of their composition, to avoid a «monopoly» position in performing control and supervisory functions, to transfer the majority of powers to a remote mode; to develop programs for accelerated adaptation of the personnel basis of measures digitization to counter the socio-economic crisis caused by martial law in Ukraine, which will affect on general state of the personnel potential; to implement an effective system of combating digital fraud, which should be based on the principles of permanence, integrity, and multi-level internal control; to ensure the appropriate level of financial, information and communication technologies using. For this purpose, it is necessary to develop regulations of foreign experience adaptation on the outlined issue to the national environment, with using more important developments of foreign countries; to develop and implement a system of increasing the enterprises resource potential that form and implement transfer policy. It is substantiated that the use of mentioned proposals for the improvement of transfer policy tools will ultimately contribute to the achievement of efficiency and transparency of the financial market, European integration and approximation to world standards, overcoming the negative impact of threats to financial and tax mechanisms.

Keywords

transfer policy; transfer pricing; transfer policy tools; transfer price; dividends; declaration.

JEL classification:G320; F380; DOI:https://doi.org/10.33987/vsed.3-4(86-87).2023.88-97

UD classification: 338.5:336.74

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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