Tax havens and transfer pricing intensity: Evidence from the French CAC-40 listed firms
Résumé
Multinational enterprises (MNEs) may use transfer pricing techniques andpolicies to reduce their tax base in higher-tax rate jurisdictions by shifting it tolower-tax rate countries or tax havens. These practices, enhanced by the globali-zation and dematerialization of the economy, have flourished and became a majorissue for supranational organizations, tax authorities and even in the public opinion.This study analyses the impact of intangible assets, firm size, effective tax rate, andleverage on transfer pricing intensity. French publicly listed firms in the CAC-40 were examined during the period from 2012 to 2015. The regression results show thatthe firm size and leverage are positively associated while intangible assets andeffective tax rate are negatively associated with transfer pricing intensity.