Transactions Transfer Pricing Policies and Performance of Corporate Organizations’ in Nigeria


  • Augustine E. Osho


Keywords: Transfer Pricing, Target Price, Interest Rate, Exchange Rate, Performance


The study examined the effect of transaction transfer pricing policies on performance of corporate organization. Specifically, the study investigates the effect of target price, interest rate, inflation rate and exchange rate on profit after tax of listed food and beverage companies in Nigeria. The study sampled 5 companies out of 21 companies, the study employed secondary data and the data were collated from the financial reports of the sampled companies over 10 years (2012 - 2021). The study utilized panel regression analysis techniques. The fixed effect result revealed that transfer price and interest rate maintained positive but insignificant relationship with profit after tax with coefficient of 0.222465 (p = 0.3297 > 0.05) and 0.151676 (p = 0.0074 > 0.05), while, inflation rate and exchange rate were found to be negatively and insignificantly related to with coefficient -0.598881 (p = 0.5331 > 0.05) and -0.051286 (p = 0.5919 > 0.05) The study concluded that transactions transfer pricing policies has both positive and negative influence on performance of corporate organization. Especially, when measured in terms of profit after tax. Based on this finding, it was recommended that food and beverage companies should develop a mechanism to hedge against exchange rate and inflation rate caused by anticipated adjustment on exchange and inflation rates.



Adekunle, A. A., & Asaolu, T. (2013). An empirical investigation of the financial reporting practices and banks’ stability in Nigeria, Journal of Business and Management Review, 2(5), 157-180

Arrow, K. J. (1970). The economic implications of learning by doing, Review of Economic Studies, 29, 155–173.

Bradshaw, A., Ranciere, R. & Rogoff, K. (2013). Exchange rate volatility and productivity Growth: the role of financial development. Journal of monetary economics, 56(4), 494-513

Faria, J. R. & Carneiro, F. G. (2001). Does high inflation affect growth in the long and short-run? Journal of Applied Economics, 4(1), 89-105

Fields, L, & Mais, E. (2004) Managerial Voting Right and Seasoned Public Equity issues, Journal of Financial and Quantitative Analysis 29(3), 445-457

Garrison R. (2008). The relationship between culture and tax evasion across countries. Additional evidence and extension. Journal of International Accounting, Auditing and Taxation 17(2) 67-68

ICAN, (2014). Professional examination pathfinder: Strategic Financial Management. Lagos: VI Publishing Limited

Jason, C. (2017). Moderating Effect of interest rates on relationship between foreign Exchange rate fluctuation and performance of Nairobi Securities Exchange Market Universal Journal of Accounting and Finance, 4(2), 27–34.

Jillian, K. (2019). Studied the driver factors of transfer pricing policies by multinational companies in Rwanda, Journal of Finance and Research, 2(1), 12-23.

Kiabel, D. B. (2009). Boosting revenue generation by state government In Nigeria: the tax

Consultant option revisited, European Journal of Science, 13(2), 50-60.

Kituku, O.A. (2014). The impact of exchange rate fluctuation on the Nigerian economic Growth: An empirical investigation, International Journal of Academic Research in Business and Social Sciences, 4(8), 224-233.

Kim, Y & Lu, H. (2011). Connectivity and trade relativity: the case of ASEAN, Journal of

Shipping and trade, 1(11), 1-13

Meckling, W. H. (2017). Theory of firms: managerial behaviors agency cost and ownership

Structure, Journal of Financial & Economics, 3(4), 305-307S

Menon, S. & Viswanathan, L. (2005). Foreign currency risk management practice in U.S

Multinational, Journal of International Business and Law, 4(1), 57-67

Mutua, N. (2012). Transfer pricing management strategies by MNEs within the main investments segment of NSE. MBA research project, University of Nairobi, 23-26

Needham, E. (2013). Effect of bank lending rate on the firm’s performance in Nigeria,

Journal of Management Science, 2(3), 4-14

Okoh, P. E. & Munene, J. C. (1986). The organization dynamics, environment size, managerial values and decision Choice, International management journal, 14(8), 12-25

Omagwa, J. (2005). Foreign exchange risk management practices by foreign owned commercial bank in Kenya. Unpublished MBA research project, university of Nairobi

Pitia, D. & Lado, M. (2015) Exchange rate changes and output performance in Nigeria, Journal of Social Sciences, 73(4), 18-34

Rahman, N. H. W. A., Zain, M. M., & Yahaya, N. H. Y. (2011). CSR disclosures and its determinants: evidence from Malaysian government link companies. Social Responsibility Journal, 7(2), 181-201.

Reid, W., & Joshua, D. (2005). Theory and Practice of international financial management, Hall of India

Ross, S. A. (2008). The determination of financial structure: The incentive-signaling approach, Journal of Economics, 8(1), 23-29.

Vishnani, S., & Shah, B. K. (2007). Effect of capital management on financial performance of firms, Journal of finance & Research, 7(4), 27–48

Weinraub, B. K. (2004). Impact of working capital management policies on corporate performance-an empirical study. Global Business Review, 8(2), 267-281.

Williams, H. T., (2018). Impact of exchange rate fluctuations on firms’ performance in Nigeria, Journal of Business Management and Economic 2(3), 1-10.




How to Cite

Osho, A. E. (2023). Transactions Transfer Pricing Policies and Performance of Corporate Organizations’ in Nigeria. The Journal of Accounting and Management, 13(1), 7–17. Retrieved from