해외 자회사를 통한 수출입이 기업수익성에 미치는 영향

The Effects of Transactions through Overseas Subsidiaries on the Profitability of Firms in Korea

In this study, we investigate the effects of transfer pricing in exportation and importation through overseas subsidiaries of firms in Korea on their profitability by using 5-year panel data from the dataset provided by the Bureau of Statistics. This dataset is based on the annual Surveys on Corporate Business Activities and their micro-level data like accounting and financial data from the period covering 2009 through 2013. Main results are as follows. First, there exists a positive effect of overall exportation on corporate profitability. Second, there exists a negative effect of exportation through their overseas subsidiaries on corporate profitability whereas there exists a non-significant effect of importation through their overseas subsidiaries. Third, there also exists a negative effect of higher shareholdings in overseas subsidiaries. The results imply that firms in Korea depending heavily on exportation and importation for their growth and profitability might consider using transfer pricing between their overseas subsidiaries amidst the scenario of possibly deteriorating the profitability and cashflows of firms in the home country.