Generolo Jono Žemaičio Lietuvos karo akademija

International fiscal regulation of transfer pricing solves important taxation problems of company groups to ensure fair distribution of the taxation base between different jurisdictions and in one country. The alternative to the arm’s length principle for similar problems is a concept of formulary apportionment approach. The need to solve such problems is pressing for the Russian consolidated tax groups too, primarily in the technology and capital-intensive industries. Russian Federation’s seven-year experience of creating the consolidated tax groups based on the formulary apportionment approach can be of interest to the specialists in any country researching such issues, because the government has acknowledged the current Russian system ineffective. Economic approach to formation of a sectorial cashgenerating unit grouped according to economically integrated businesses and an investor control concept over an investment facility is the basis of our research. Practical calculations were done for the current consolidated tax group, confirming the advantages of this approach for fair distribution of the taxation base for the technology and capital-intensive industries. We have drawn executives’ attention to the solutions enhancing investment attractiveness of the tax groups in conditions of restricted access to information for external users in the IFRS reports of a group.

The objective of this study is to examine the effect of business size, market value of equity, required rate of return, systematic risk, debt ratio and total debt along with inflation on cost of capital for selected firms in five states of ASEAN region. Secondary data is collected during the time of 2000–2017 for ten firms in each country. Findings through regression analysis indicates the fact that significant determinant for fixed payment ratio is required rate of return, size, market to book ratio, systematic risk, and inflation are significant determinant. For interest covered ratio, key determinants are required return, total debt, and market to book ratio, size, and inflation. For dividend payment, size, debt ratio, inflation, and market value of equity. For interest payment, systematic risk, inflation, log market value of equity, size and market to book ratio are found to be significant determinant. These findings are providing a new insight in the literature of finance and financial management. Both theoretical and practical significance of the study can be viewed through provision of literature discussion and empirical findings. Policy makers, financial analysts, and other industry experts can utilize these findings as a meaningful source for strategic decision. However, future studies can be reconsidered remaining countries in ASEAN region and better sample size of the firms.