Transfer Pricing Intensity in the European Union – Financial and Governance Determinants of High Intra-Group Transactions

This article investigates the key determinants of transfer pricing practices among EU companies. Using an integrated analytical framework, it examines how organizational structure, financial performance and corporate governance shape the volume of related-party transactions. The study relies on manually collected firm-level data, supported by Bloomberg and Thomson Reuters sources. A structured literature review identifies relevant variables, while logistic regression tests their influence. The results show that firms with high intra-group transaction volumes typically report lower effective tax rates, reduced profitability, limited operating cash flow, fewer intangible assets and smaller boards, highlighting patterns consistent with strategic transfer pricing behaviour.