Discussions about transfer pricing normally presume the firm's objective is to maximize profit while making the best use of existing capacity. This article differs by exploring the impact of transfer pricing on capital budget decisions. In decentralized firms, decision authority for investment...

In choosing where to invest, firms seek out information on a set of possible locations. Information asymmetries may be more extreme internationally than domestically, making country visibility particularly important in decisions to locate investment abroad. We develop a country visibility index...