Back to Library
Can a Simple Values Statement Change Transfer Pricing Negotiations?

Can a Simple Values Statement Change Transfer Pricing Negotiations?

Summary

Accounting and Reporting Management Accounting

This study tests whether a cooperative corporate values statement (a nonbinding “we work better together” message) changes how managers predict transfer prices when two divisions negotiate an internal price for a component. The core idea is behavioral: buyers and sellers enter negotiations with different starting points, and a culture “nudge” may shift those expectations, especially for the buying manager