Using statistical analysis to improve TNMM

15 October 2018
Yves Hervé and Philip de Homont

NERA Managing Director Yves Hervé and Associate Director Philip de Homont published the article “Using statistical analysis to improve TNMM” in International Tax Review. It is the third article in their series on transfer pricing technical challenges and solutions brought about by the changing regulatory and economic landscapes for global multinational entities. As a follow-up to their previous article on the necessity of rethinking transactional net margin method (TNMM) studies, the authors explain how TNMM studies can be enhanced through the use of quantitative statistical analysis to control for any differences between the company being screened and the similar companies chosen for comparison in the study.

The first article in the authors’ International Tax Review series can be found here.