Modus operandi of transnational transfer pricing for window dressing

A goal of transfer pricing may be to maximize after tax revenue by setting transfer prices that reduce the total tax paid. ＂Transfer pricing＂ is the pricing of products or services provided by one division to other division of the same corporate entity. Most of the corporate entities are using the method of ＂Window dressing＂, which is a technique used in preparation of financial statements of corporate entities. A transnational corporation is any enterprise that undertakes Foreign Direct Investment （FDI）, owns or controls income gathering assets in more than one country, produces goods or services outsides its country of origin, or engages in international production. Profitability of the transnational corporate entities is being manipulated by the technique of transfer pricing. Abuse of transfer prices is a key tool used by the corporate entities to think that they have virtually no profit; hence, they shouldn＇t pay any taxes. India needs to realize the fundamental need for co-operation among tax administrations in order to remove the obstacles that international double taxation presents to the free movement of goods, services and capital between various countries. In this context, one needs to consider that transactions among associated enterprises may take place under different conditions from those taking place among independent enterprises, while enforcing the act of transfer price mechanism. This paper focuses on transfer pricing and its implications in transnational transactions.     

Investment decisions in the wireless industry applying real options

The wireless industry is one of the most capital intensive high-technology industries. This paper applies real options techniques to estimate investments under uncertainty in two new ventures: (a) deferral of the expansion from 2.5G to 3G networks; and (b) expansion of a 2.5G network using Wi-Fi as an alternative technology. The cases are examined and analyzed both qualitatively and quantitatively, using realistic assumptions and parameters. Investment cost, number of subscribers, pricing of services, and risk are at the core of investment decision processing. In both cases, sensitivity analysis of the value of the (real) option considering the above key parameters was conducted, to extrapolate useful findings that should be taken into consideration by the decision makers in wireless companies.     

Human resource management in developing economies: a comparison of India and Thailand

This paper reports the results of surveys of firms that were conducted both in India and Thailand. The surveys centred on a wide range of human resource management practices (staffing, training, compensation and evaluation). The sample consisted of both the subsidiaries of multinational corporations and locally owned companies. Statistical analysis suggests pronounced differences in employment practices between India and Thailand in some areas, while considerable similarities in other areas. The study controls for a variety of organizational factors (e.g., firm size, ownership (foreign versus domestic), union status).     

The impact of social cues on passengers’ travel experience

Despite the importance of social cues in service experience environments, little is known about the role of other customer perceptions (OCP) in the formation of passengers’ travel experience (PTE) and loyalty in public transportation. This study examines the impact of OCP on PTE and loyalty in public transportation and also investigates the moderating role of face-consciousness between OCP and PTE. Results revealed that all three dimensions of OCP have a positive effect on PTE, which consequently influences loyalty. More importantly, face-consciousness moderated the relationship between suitable behavior and PTE. Transport managers can benefit from these findings by considering the social environment as they design their services.     

Polarization,Inequality, and Growth: The Indian Experience

One issue that has attracted considerable attention recently among scholars interested in inequality and conflict is polarization. We analyze polarization in India over roughly the past three decades using consumption expenditure data. We show that both bipolarization and multidimensional polarization (on several dimensions: rural–urban, state, region) have increased since the 1990s. In the case of bipolarization, this is a reversal from an earlier trend (in the 1980s). Overall, our results suggest that the high growth that India has witnessed since the 1990s has been associated with widening disparities. Comparing polarization and inequality trends, we find similarities, but also some differences; we also show how the study of polarization can provide different insights. Our results therefore underscore the importance of studying polarization as distinct from traditional inequality.     

An investigation into factors impacting financial exclusion at the bottom of the pyramid in South Africa

Financial exclusion has been shown to have negative socio-economic effects on citizens, especially at the bottom of the economic pyramid. South Africa suffers from high levels of financial exclusion, disproportionately at the bottom of the pyramid. This study investigates nine factors identified from the literature as being positively associated with financial exclusion using a logistic regression model. The findings show that the most significant factors associated with being financially excluded at the bottom of the pyramid in South Africa were educational level, primary source of income, age, home language and number of dependents. The study further found that gender, relationship status and home ownership were not associated with being financially excluded. An interesting finding was that living in a rural area as opposed to an urban area was not significantly associated with being excluded. The findings and their implications for expanding financial inclusion at the bottom of the pyramid are discussed.     

‘Hybrid’ open source software virtual communities of practice – a conceptual framework

‘Hybrid’ open source software communities are conducive to knowledge integration and innovation, and can be seen through a community of practice lens. In this paper, we develop an integrated process theory of structural attributes and social mechanisms of hybrid virtual communities. We offer a dynamic view of knowledge integration and innovation in such communities. We also emphasise the multi-faceted nature of virtual communities and identify factors that regulate participation and sustain such communities. This has implications for theorising about knowledge integration and innovation in hybrid virtual settings. Finally, virtual ethnography and multi-level research are suggested for future research.     

Fat tails,VaR and subadditivity

Financial institutions rely heavily on Value-at-Risk (VaR) as a risk measure, even though it is not globally subadditive. First, we theoretically show that the VaR portfolio measure is subadditive in the relevant tail region if asset returns are multivariate regularly varying, thus allowing for dependent returns. Second, we note that VaR estimated from historical simulations may lead to violations of subadditivity. This upset of the theoretical VaR subadditivity in the tail arises because the coarseness of the empirical distribution can affect the apparent fatness of the tails. Finally, we document a dramatic reduction in the frequency of subadditivity violations, by using semi-parametric extreme value techniques for VaR estimation instead of historical simulations.     

A characterization of exponential distributions based on order statistics

This note contains a characterization of exponential distributions based on the properties of linear transformations of order statistics. This is a certain converse of a well known theorem of Rényi about the distribution of linear combinations of order statistics from exponential distributions. Some statistical applications of the result are indicated.