• Title/Summary/Keyword: Incentives Factors

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The Effect of the Degree of Competition of the Hospital Market Regions on Clinic's Rate of Antibiotics Prescription (병원시장지역 내 경쟁 정도가 의원급 의료기관의 항생제 처방률에 미치는 영향)

  • Jo, Changik;Lim, Jae-Young;Lee, Soo Yeon
    • KDI Journal of Economic Policy
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    • v.30 no.2
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    • pp.129-155
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    • 2008
  • The rate of antibiotics prescription for an acute airway infection significantly varies depending upon the diagnosis type, specialty, and the location of the hospital along with many other related factors. The objective of this study is to empirically investigate the possible relationship between the antibiotics prescription rates for an acute airway infection and the degree of competition in the hospital market regions of mainly the providers of primary medical care services such as clinics, internal medicines, pediatrics and otorhinolaryngology department. Using the data from Health Insurance Review and Assessment Service (HIRA) regarding the hospitals' antibiotics prescription rates for the acute airway infection and controlling for selected variables of demand and supply sectors, this study tries to figure out that the degree of competition in the hospital market, regardless of what type of competition indexes we employed, has a statistically significant effect on the variations of antibiotics prescription rate of the clinics in local areas. This result implies that as an economic consideration itself, the change in the degree of competition in the hospital market can play a crucial role influencing the treatment behaviors of the medical doctors. More specifically, this study reveals that as the degree of competition increases the antibiotics prescription rate goes up. This result means that if the market becomes more competitive in a specific region so that it might cause a reduction in doctor's income, doctors with rational decision-making process, recognize that the benefit created from inducing patients' seemingly unnecessary demand for medical care (income effect) would be higher than the costs associated with sustaining their targeted income (substitution effect). It is because that the doctors are more likely to prescribe antibiotics which create relatively higher margins than other medical care services in order to sustain their targeted income when the hospital market competition becomes tighter. Even though this study empirically confirms that antibiotics prescription can be affected by the economic incentives, it still raises following issues as limitations of the study: first issue is about the representativeness of the hospital regions segregated for this study, which might be weak in explaining whether these regions are mutually exclusive in reality. Patients actually consider the quality of services, transportation cost, time costs, and any other related factors choosing the doctors or hospitals, and in that sense, this study rules out 'border-crossing' in using the medical care services. Second issue arises in capturing the data of antibiotics prescription rate. Since we use the average rate for each medical institution, we cannot figure out the average rate for each patient so that we are not able to control for the variation of patients' medical conditions. It is because of the unavailability of data regarding each patient's medical condition from HIRA. Thirdly, since this study mainly analyzes the medical institutions providing primary care such as clinics, internal medicines, pediatrics, and otorhinolaryngology department, it is skeptical of whether those institutions can represent the hospital market in respective regions and truly reflect the degree of competition. It needs to extend the study areas and disease types as well as any micro data for future studies.

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Influential Job-Related Characteristics for the Job Satisfaction and Turnover Possibility of Dental Hygienists (치과위생사의 직무만족과 이직가능성에 영향을 미치는 직무관련특성 요인)

  • Lee, Chun-Sun;Park, So-Yong;Park, Hye-Min;You, Youn;Shin, Eun-Kyung;Chae, Song-I;Han, Seong-Ok;Oh, Hye-Young
    • Journal of dental hygiene science
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    • v.12 no.6
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    • pp.666-674
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    • 2012
  • The purpose of this study was to examine the job-related characteristics of dental hygienists affecting their job satisfaction and turnover possibility. The subjects in this study were 297 dental hygienists who worked in dental hospitals and clinics in the metropolitan area. The dental hygienists who worked for three to less than five years, who were unmarried and who didn't benefit from any incentive systems expressed a greater satisfaction, and those who were married, whose workplaces were established jointly with other dental institutions in the form of a network and whose workplaces offered incentives were more likely to change their employment. As for influential factors for job satisfaction and turnover possibility, the respondents whose workplaces were established jointly with other dental institutions were less satisfied, and a larger number of patients and better communication led to higher satisfaction. Those who worked in general hospitals were more likely to change their employment, and better welfare benefits, more appropriate length of working hours and a larger number of patients led to lower turnover responsibility. The findings of the study ascertained that working environments were one of the factors to impact on job satisfaction and turnover possibility, and both of hospitals and dental hygienists should make an effort to improve working environments.

An Exploratory Study on the Barriers of Greenhouse Gas (GHG) Reduction Policy in the Agricultural Sector through Semi-Structured Interviews (반구조화 인터뷰를 통한 농업부문 온실가스 감축정책의 방해 요인에 관한 탐색적 연구)

  • Sung Eun Sally Oh;Yun Yeong Choi;Hyunji Lee;Jihun Paek;Brian Hong Sok Kim
    • Korean Journal of Agricultural and Forest Meteorology
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    • v.25 no.1
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    • pp.1-16
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    • 2023
  • As the Intergovernmental Panel on Climate Change (IPCC) emphasized the transition to a carbon-neutral society globally by 205 0, major countries such as Korea, Japan, and Europe declared carbon-neutral goals. The agricultural sector is a carbon-absorbing sector, and its importance has increased as the General Assembly of the Parties to the Climate Change Convention (COP 26) held in the UK in November 2021 emphasized the role of agriculture to discuss climate change. However, GHG reduction projects in the agricultural sector are not properly monitored considering the domestic situation, and a system for quantitative evaluation of the effectiveness or basis of implementing the project program is not in place. Therefore, a priori study is needed to understand the current status of existing policies and to review matters that need to be improved in order to facilitate policy design, implementation, and monitoring for GHG reduction in the agricultural sector. The purpose of this study is to examine the opinions of stakeholders by applying a semi-structured interview method to diagnose the current status of Korea's GHG reduction policy in the agricultural sector and identify factors that hinder policy implementation. As a result of the semi-structured interview, this study presented factors that hinder the promotion of GHG reduction policies in the agricultural sector according to four types of data and technology, finance, institutions, and perceptions. Some stakeholders also stressed that the pilot project could be helpful as a way to comprehensively consider the implications of this study, such as securing technology data, establishing a system for verifying effectiveness, and providing incentives and promoting them. Rather than drawing specific conclusions, this study is an exploratory study that diagnoses and reviews the progress of GHG reduction policies, and it can be used as useful basic data if it secures enough interview respondents and balances the number of samples by group.

Human Resource Management Policy for University Faculty enhancing University-Industry Cooperation (산업현장친화형 대학교원 인사제도의 방향)

  • Jang, Seungkwon;Choi, Jong-In;Hong, Kilpyo
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.8 no.4
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    • pp.95-109
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    • 2013
  • The practices and processes of HRM (Human Resource Management) for university faculty in Korea depend heavily on assessment of research and teaching rather than the UIC (University-Industry Cooperation) performance. In this regard, HRM of Korean universities is said to be far distant from UIC. Although policy initiatives by the Korean government, notably the MoE (Ministry of Education) have implemented in most universities, the desirable level of UIC could not be achieved yet. Moreover, the very notion of 'university' in Korea is much more to do with 'pure' education and research institution than with 'applied' and 'vocational' purpose. Considering upon HRM practices and organizational culture, for enhancing UIC in Korea, the government's policy should be linked to alter deep-rooted university culture. So the aims of the research are to describe the current state of HRM in Korean and foreign universities; to find out the critical factors of UIC in Korean universities; to analyze the gaps between university research and industrial commercialization based on a conceptual framework, the 'valley of the death'; and to recommend HRM policies fostering UIC for the MoE. For achieving these objectives, we deploy multiple methodologies, namely, in-depth interview, literature survey, and statistical data analysis with regard to UIC. Analyzing the data we have collected, the present research sheds light on all aspects of HRM processes and UICs. And the main policy implication is restricted to the Korean universities, even if we have collected and analyzed foreign universities, notably universities in the USA. The research findings are mainly two folds. Firstly, the HRM practices among Korean universities are very similar due to the legally institutionalized framework and the government's regulations. Secondly, the difficulties of UIC can be explained by notion of the 'valley of death' ways in which both parties of university and industry are looking for different purposes and directions. In order to overcome the gap in the valley of death, the HRM policy is better to be considered as leverage. Finally, the policy recommendations are as follows. Firstly, various kinds of UIC programs are able to enhance the performances of not only UIC, but also education and research outcome. Secondly, fostering organizational climate and culture for UIC, employing various UIC programs, and hiring industry-experienced faculty are all very important for enhancing the high performance of university. We recommend the HRM policies fostering UIC by means of indirect way rather than funding directly for university. The HRM policy of indirect support is more likely to have long-term effectiveness while the government's direct intervention to UIC will have likely short-term effectiveness as the previous policy initiatives have shown. The MEST's policy means of indirect support might vary from financial incentives to the universities practicing HRM for UIC voluntarily, to information disclosure for UIC. The benefits of the present research can be found in suggesting HRM policy for UIC, highlighting the significance of industry-experienced faculty for UIC, and providing statistical analysis and evidences of UIC in Korean universities.

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The Case Study of the Entrepreneurship Intensive Programs and the Successful Diffusing Strategies of the Entrepreneurship Education. (벤처창업전문과정(EIP) 사업추진 성공사례와 확산전략)

  • Ha, Kyu-Soo;Rhee, Taik-Ho;Lee, Seung-Weon;Kim, Ki-Hak
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.1 no.1
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    • pp.127-156
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    • 2006
  • This paper introduced successful case studies of the EIP (Entrepreneurship Intensive Programs) programs that are planed by 5MBA (Small and Medium Business Administration) and executed by Hoseo University and Jinju National University in 2004. Therefore, the illustrations and examples used in this paper are based on the EIP programs of those schools. Currently there are five graduate schools for Entrepreneurship educations that are originated from the EIP program models and those graduateschools are actively and successfully working. The purpose of this paper is to find out the diffusing strategies of the Entrepreneurship spirits and Entrepreneurship Education programs after careful analysis and review of the EIP programs. The main factors of the Success of the EIP are as follows. First, there were excellent modules of the education process. Second, there were firm and clear goals of the education. Three, there were differentiated contents of the entrepreneurship education programs. Four. each and every education performance was monitored. Five, during the programs, real start-up cases were actually handled and students had many opportunities to present their cases. However, there were some shortcomings to improve and change of the entrepreneurship education. First of all, it was very difficult to make proper education formation that is fit in the purpose of the program. Second, motivating students to find out their own business opportunities so as to turn them into real business was not satisfactory or easy. Third, there were some limitations in distributing and executing the EIP budgets. Therefore, to improve the efficiency of the Entrepreneurship education, following expanding strategies should be complemented. First, continuous redesigning of the entrepreneurship education programs is very important. Second, the specialization of the contents of the entrepreneurship education programs is essential. Third, there should be some discretionary room for the management of the entrepreneurship programs. Fourth, it is also important activating the entrepreneurship networks among schools of the entrepreneurship education. Finally, it is necessary to give some incentives and motivations based on the proper performance evaluation system.

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A Study on the Relationship between the Tax Evasion Factors and the Tax Evasion Inclination of Value Added Tax in Korea (부가가치세 포탈요인과 포탈성향에 관한 실증적 연구)

  • Kim, Beom-Jin;Ham, Young-Bok
    • Korean Business Review
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    • v.14
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    • pp.1-30
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    • 2001
  • To prevent the VAT evasion and to form a sound VAT paying culture, we can draw the policy directions for government as follows: First, it is necessary to strengthen the tax supervision of small business and the administration of tax sources of cash-income industry. Second, the tax-deductible rate of the received tax invoices should be increased in a short-term base, and a simplified taxation system should be abolished in a long-term base. Third, in cases a trader has not received a tax invoice, an additional tax should be applied. Forth, to issue the tax invoice faster and conveniently, it is requested to introduce a new system which issues electronic card of registration when a businessman applies for his/her business registration. Fifth, to make tax standard transparent, it is desirable to punish the violator, relating to credit card regulations, stricter than present and to enforce the electronic bookkeeping. Sixth, for the reduction of noncompliance rate and creating a climate for autonomous, faithful tax return, it is necessary to expand and intensify tax investigation. And also it is necessary to make the level of penalty tax higher up and the level of criminal punishment less down, to keep up tax audit coverage. Seventh, a trader who is eligible for simplified taxation, whose tax base is under 12,000 thousand won, should not be required to pay the value added tax. But it is desirable to cut down them for the fairness of tax burden. Eighth, the effective date of the revised tax law should be fixed. Ninth, it is necessary to reinforce publicity and to educate on tax system and administration, for reducing tax evasion or tax avoidance and encouraging faithful tax return. Tenth, as the tendency of VAT evasion of distribution industry turns out to be the highest, it is requested not only to intensify tax administration on them but also to establish system and incentives, for introducing information system in distribution industry(introducing POS system, computerization of transaction record, establishing EDI between traders).

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Variation of Rice Production for Two Decades before and after Breeding Tongil Variety in Korea (수도 통일품종 육성보급 전후 20년간의 생산성 변이)

  • Eun-Woong Lee
    • KOREAN JOURNAL OF CROP SCIENCE
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    • v.27 no.3
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    • pp.183-192
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    • 1982
  • The variability of rice productivity during last 2 decades (1961-1980) of ten years before and after the introduction of"Tongil" was reviewed from the epochal, regional and varietal points of view. During that period the cultivated area of paddy rice have remained almost unchanged, while the total rice production have got elevated from 3, 463 million metric tons in 1961 to 6.006 million metric tons in 1977, recording 73.4% increase. This remarkable increase in rice production is considered to be attributable much to the development and release of new high yielding variety, "Tongil", coupled with the amelioration of cultural techniques. However, in 1978 Tongil type varieties experienced the epidemic outbreak of blast disease due to the shifted race population of blast fungus and in 1980 recorded poor rice production as low as in 1960's due to the unfavorable weather stress throughout the rice growing season, giving rise to many problems awaiting solutions for securing the stabilized high production of rice. The rice yield has continued the gradual increase during last two decades but its difference between farmer and research organization have got wider from 79kg/10a during 1960 to 1971 to 101kg/l0a during 1972 to 1980, and also the inter-regional differences have been increased from 50-60kg/10a to 80kg/10a during those periods. Therefore, this proves that we have raised the upper boundary of rice yield by increasing the yield potential of rice variety but have not changed those absolute deviations. Estimates indicate that the increased rice production during that period was indebted 40 percent to the varietal improvement and 13 percent to the ameliorated agro-technologies, and the rest, 47 percent, could be ascribed to the other factors besides varieties and cultural technologies such as the improved agricultural environments, etc. Of course, even though it cannot be expected to unify the cultural environments and the cultural technologies, provided that much efforts are to be endeavored to minimize the yield difference of 20 percent between farmer and research organizations and the inter-regional yield difference of 20 percent, much increased rice production can be expected to be achieved with the current level of cultural technology and the yielding potential of the present rice varieties. In order to expedite the above effects on rice production the followings are to be put into practices consitently and steadfastly. 1. Reinforcement of breeding for varieties with high yielding potential and less susceptible to climatic-stress and pests, and of basic physicoecological studies of rice plant for improving the cultural technologies. 2. Continuous endeavor to secure the stabilized cultural environments by improving the soil fertility and increasing the drainage and irrigation facilities. 3. Political back-up to encourage the farmers' incentives for production 4. Precise surveys for agricultural statistics to facilitate the long-term planninge long-term planning.

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Awareness of the Prevention of Work-Related Diseases among Farmers - Based on Qualitative Research Methods (농업인들의 업무상질환 예방에 대한 인식도 - 질적연구방법을 토대로)

  • Ae-Rim, Seo;Ji-Youn, Kim;Bokyoung, Kim;Gyeong-Ye, Lee;Ki-Soo, Park
    • Journal of agricultural medicine and community health
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    • v.47 no.4
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    • pp.211-219
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    • 2022
  • Objective: This study was conducted to investigate the awareness of work-related disease prevention of farmers. Method: As a research method, a qualitative focus group interview was conducted in 18 participants. Results: Prevention and management services for work-related diseases of farmers mostly are based on research from other fields and so are not highly effective because their content is not relevant to agricultural work. It has been suggested that such program designers be required to have some appropriate related knowledge, and that incentives and a certification system for participation in such education be established. To analyze work-related diseases of farmers, fields of prevention, diagnosis, treatment, and rehabilitation should be created. They demanded the designation of hospitals and the actualization of compensation for farmers' safety insurance. The work-related diseases to address were include musculoskeletal diseases, pesticide poisoning-related diseases (cardiovascular disease, respiratory disease), psychiatric diseases such as depression, and allergic diseases. However, this must have been the result of the harmful factors they felt during agricultural work. And for farmer patients diagnosed with work-related diseases, it was said to strengthen farmer safety insurance. Conclusion: In order to increase the safely and health effects of agricultural work, it is necessary to prevent and manage work-related diseases of farmers. Projects should be developed in consideration of cultural and economic barriers of farmers and the characteristics of the work.

A study on The U.S.-Korean Trade Friction Prevention and Settlement in the Fields of Information and Telecommunication Industries (한미간(韓美間) 정보통신분야(情報通信分野) 통상마찰예방(通商摩擦豫防)과 해소방안(解消方案)에 관한 연구(硏究))

  • Jung, Jay-Young
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.13
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    • pp.869-895
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    • 2000
  • The US supports the Information and Communication (IC) industry as a strategic one to wield a complete power over the World Market. However, several other countries are also eager to have the support for the IC industry because the industry produces a high added value and has a significant effect on other industries. Korea is not an exception. Korea recently succeeded in the commercialization of CDMA for the first time in the world, after the successful development of TDX. Hence, it is highly likely to get tracked by the US. Although the IC industry is a specific sector of IT, there is a concern that there might be a trade friction between the US and Korea due to a possible competition. It will be very important to prepare a solution in advance so that Korea could prevent the friction and at the same time increase its share domestically and globally. It will be our important task to solve the problem with the minimum cost if the conflict arises unfortunately in the IT area. The parties that have a strong influence on the US trade policy are the think tank group and the IT-related interest group. Therefore, it would be important to have a close relationship with them. We found some implications by analyzing the case of Japan, which has experienced trade frictions with the US over the long period of time in the high tech industry. In order to get rid of those conflicts with the US, the Japanese did the following things : (1) The Japanese government developed supporting theories and also resorted to international support so that the world could support the Japanese theories. (2) Through continual dialogue with the US business people, the Japanese business people sought after solutions to share profits among the Japanese and the US both in the domestic and in the worldwide markets. They focused on lobbying activities to influence the US public opinion to support the Japanese. The specific implementation plan was first to open culture lobby toward opinion leaders who were leaders about the US opinion. The institution, Japan Society, were formed to deliver a high quality lobbying activities. The second plan is economic lobby. They have established Japanese Economic Institute at Washington. They provide information about Japan regularly or irregularly to the US government, research institution, universities, etc., that are interested in Japan. The main objective behind these activities though is to advertise the validity of Japanese policy. Japanese top executives, practical interest groups on international trade, are trying to justify their position by direct contact with the US policy makers. The third one is political lobby. Japan is very careful about this political lobby. It is doing its best not to give impression that Japan is trying to shape the US policy making. It is collecting a vast amount of information to make a correct judgment on situation. It is not tilted toward one political party or the other, and is rather developing a long-term network of people who understand and support the Japanese policy. The following implications were drawn from the experience of Japan. First, the Korean government should develop a long-term plan and execute it to improve the Korean image perceived by American people. Second, the Korean government should begin public relation activities toward the US elite group. It is inevitable to make an effort to advertise Korea to this elite group because this group leads public opinion in the USA. Third, the Korean government needs the development of a relevant policy to elevate the positive atmosphere for advertising toward the US. For example, we need information about to whom and how to about lobbying activities, personnel network who immediately respond to wrong articles about Korea in the US press, and lastly the most recent data bank of Korean support group inside the USA. Fourth, the Korean government should create an atmosphere to facilitate the advertising toward the US. Examples include provision of incentives in tax on the expenses for the advertising toward the US and provision of rewards to those who significantly contribute to the advertising activities. Fifth, the Korean government should perform the role of a bridge between Korean and the US business people. Sixth, the government should promptly analyze the policy of IT industry, a strategic area, and timely distribute information to industries in Korea. Since the Korean government is the only institution that has formal contact with the US government, it is highly likely to provide information of a high quality. The followings are some implications for business institutions. First, Korean business organization should carefully analyze and observe the business policy and managerial conditions of US companies. It is very important to do so because all the trade frictions arise at the business level. Second, it is also very important that the top management of Korean firms contact the opinion leaders of the US. Third, it is critically needed that Korean business people sent to the USA do their part for PR activities. Fourth, it is very important to advertise to American employees in Korean companies. If we cannot convince our American employees, it would be a lot harder to convince regular American. Therefore, it is very important to make the American employees the support group for Korean ways. Fifth, it should try to get much information as early as possible about the US firms policy in the IT area. It should give an enormous effort on early collection of information because by doing so it has more time to respond. Sixth, it should research on the PR cases of foreign enterprise or non-American companies inside the USA. The research needs to identify the success factors and the failure factors. Finally, the business firm will get more valuable information if it analyzes and responds to, according to each medium.

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Factors Affecting International Transfer Pricing of Multinational Enterprises in Korea (외국인투자기업의 국제이전가격 결정에 영향을 미치는 환경 및 기업요인)

  • Jun, Tae-Young;Byun, Yong-Hwan
    • Korean small business review
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    • v.31 no.2
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    • pp.85-102
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    • 2009
  • With the continued globalization of world markets, transfer pricing has become one of the dominant sources of controversy in international taxation. Transfer pricing is the process by which a multinational corporation calculates a price for goods and services that are transferred to affiliated entities. Consider a Korean electronic enterprise that buys supplies from its own subsidiary located in China. How much the Korean parent company pays its subsidiary will determine how much profit the Chinese unit reports in local taxes. If the parent company pays above normal market prices, it may appear to have a poor profit, even if the group as a whole shows a respectable profit margin. In this way, transfer prices impact the taxable income reported in each country in which the multinational enterprise operates. It's importance lies in that around 60% of international trade involves transactions between two related parts of multinationals, according to the OECD. Multinational enterprises (hereafter MEs) exert much effort into utilizing organizational advantages to make global investments. MEs wish to minimize their tax burden. So MEs spend a fortune on economists and accountants to justify transfer prices that suit their tax needs. On the contrary, local governments are not prepared to cope with MEs' powerful financial instruments. Tax authorities in each country wish to ensure that the tax base of any ME is divided fairly. Thus, both tax authorities and MEs have a vested interest in the way in which a transfer price is determined, and this is why MEs' international transfer prices are at the center of disputes concerned with taxation. Transfer pricing issues and practices are sometimes difficult to control for regulators because the tax administration does not have enough staffs with the knowledge and resources necessary to understand them. The authors examine transfer pricing practices to provide relevant resources useful in designing tax incentives and regulation schemes for policy makers. This study focuses on identifying the relevant business and environmental factors that could influence the international transfer pricing of MEs. In this perspective, we empirically investigate how the management perception of related variables influences their choice of international transfer pricing methods. We believe that this research is particularly useful in the design of tax policy. Because it can concentrate on a few selected factors in consideration of the limited budget of the tax administration with assistance of this research. Data is composed of questionnaire responses from foreign firms in Korea with investment balances exceeding one million dollars in the end of 2004. We mailed questionnaires to 861 managers in charge of the accounting departments of each company, resulting in 121 valid responses. Seventy six percent of the sample firms are classified as small and medium sized enterprises with assets below 100 billion Korean won. Reviewing transfer pricing methods, cost-based transfer pricing is most popular showing that 60 firms have adopted it. The market-based method is used by 31 firms, and 13 firms have reported the resale-pricing method. Regarding the nationalities of foreign investors, the Japanese and the Americans constitute most of the sample. Logistic regressions have been performed for statistical analysis. The dependent variable is binary in that whether the method of international transfer pricing is a market-based method or a cost-based method. This type of binary classification is founded on the belief that the market-based method is evaluated as the relatively objective way of pricing compared with the cost-based methods. Cost-based pricing is assumed to give mangers flexibility in transfer pricing decisions. Therefore, local regulatory agencies are thought to prefer market-based pricing over cost-based pricing. Independent variables are composed of eight factors such as corporate tax rate, tariffs, relations with local tax authorities, tax audit, equity ratios of local investors, volume of internal trade, sales volume, and product life cycle. The first four variables are included in the model because taxation lies in the center of transfer pricing disputes. So identifying the impact of these variables in Korean business environments is much needed. Equity ratio is included to represent the interest of local partners. Volume of internal trade was sometimes employed in previous research to check the pricing behavior of managers, so we have followed these footsteps in this paper. Product life cycle is used as a surrogate of competition in local markets. Control variables are firm size and nationality of foreign investors. Firm size is controlled using dummy variables in that whether or not the specific firm is small and medium sized. This is because some researchers report that big firms show different behaviors compared with small and medium sized firms in transfer pricing. The other control variable is also expressed in dummy variable showing if the entrepreneur is the American or not. That's because some prior studies conclude that the American management style is different in that they limit branch manger's freedom of decision. Reviewing the statistical results, we have found that managers prefer the cost-based method over the market-based method as the importance of corporate taxes and tariffs increase. This result means that managers need flexibility to lessen the tax burden when they feel taxes are important. They also prefer the cost-based method as the product life cycle matures, which means that they support subsidiaries in local market competition using cost-based transfer pricing. On the contrary, as the relationship with local tax authorities becomes more important, managers prefer the market-based method. That is because market-based pricing is a better way to maintain good relations with the tax officials. Other variables like tax audit, volume of internal transactions, sales volume, and local equity ratio have shown only insignificant influence. Additionally, we have replaced two tax variables(corporate taxes and tariffs) with the data showing top marginal tax rate and mean tariff rates of each country, and have performed another regression to find if we could get different results compared with the former one. As a consequence, we have found something different on the part of mean tariffs, that shows only an insignificant influence on the dependent variable. We guess that each company in the sample pays tariffs with a specific rate applied only for one's own company, which could be located far from mean tariff rates. Therefore we have concluded we need a more detailed data that shows the tariffs of each company if we want to check the role of this variable. Considering that the present paper has heavily relied on questionnaires, an effort to build a reliable data base is needed for enhancing the research reliability.