scholarly journals Influence of Exchange Rate Fluctuations and Credit Supply on Dividend Repatriation Policy of U.S. Multinational Corporations

2020 ◽  
Vol 9 (s1) ◽  
pp. 267-290 ◽  
Author(s):  
Muhammad Tahir ◽  
Haslindar Ibrahim ◽  
Abdul Hadi Zulkafli ◽  
Muhammad Mushtaq
Keyword(s):  
Exchange Rate ◽  
Multinational Corporations ◽  
Host Country ◽  
Method Of Moments ◽  
Foreign Subsidiaries ◽  
Credit Supply ◽  
Exchange Rate Fluctuations ◽  
Private Credit ◽  
The Difference ◽  
Generalised Method Of Moments

AbstractThis study aims to examine the effect of exchange rate fluctuations and credit supply on the dividend repatriation policy of foreign subsidiaries of U.S. multinational corporations (MNCs) around the world. The difference generalised method of moments (GMM) estimator was applied to estimate the dynamic dividend repatriation model. The results suggest that the appreciation of host-country currency against the USD leads to higher dividend repatriation by the foreign subsidiaries of U.S. MNCs. Moreover, results reveal that higher availability of private credit in the host country results in lower dividend repatriation by the U.S. MNCs’ foreign subsidiaries.

Falcon, Inc.: Performance Evaluation of Foreign Subsidiaries

2007 ◽  
Vol 22 (2) ◽  
pp. 233-245 ◽  
Author(s):  
Mahendra R. Gujarathi ◽  
Vijay Govindarajan
Keyword(s):  
Performance Evaluation ◽  
Exchange Rate ◽  
Evaluation System ◽  
Foreign Subsidiaries ◽  
Performance Evaluation System ◽  
Business Units ◽  
The Difference ◽  
Exchange Rate Changes ◽  
Evaluation Metric ◽  
Subsidiary Managers

This multifaceted, decision-oriented case requires you to address several issues in performance evaluation in an international context. In the process of reviewing the annual performance of its foreign subsidiaries, Falcon's CEO raises concerns about the performance evaluation metric and the effect of exchange rate changes on the competitive positions of foreign subsidiary managers in Denmark and Japan. The case requires you to assess the strengths and weaknesses of Falcon's performance evaluation system, examine the appropriateness of country managers' responses to exchange rate changes, understand the difference between evaluation of business units and their respective managers, and recommend improvements in the performance evaluation system.

scholarly journals Financial Development, Exchange Rate Fluctuations and Debt Dollarization

2019 ◽  
Vol 19 (168) ◽  
Author(s):  
Minsuk Kim
Keyword(s):  
Exchange Rate ◽  
Financial Development ◽  
Emerging Market ◽  
Exchange Rate Volatility ◽  
Portfolio Allocation ◽  
Allocation Model ◽  
Exchange Rate Fluctuations ◽  
Private Credit ◽  
Currency Composition ◽  
Nonfinancial Firms

This paper examines how financial development influences the debt dollarization of nonfinancial firms in a sample of emerging market economies (EMEs). The macroeconomic channels are identified from an optimal portfolio allocation model and assessed empirically using the accounting information of nonfinancial firms from 21 EMEs during 2009–2017. The results show that financial development, measured by the private credit-to-GDP ratio, mainly reduces the influence of exchange rate volatility in determining a firm's debt currency composition, among other channels. Furthermore, the effect of exchange rate volatility becomes statistically insignificant beyond an estimated threshold credit-to-GDP ratio of 100 percent.

Workforce reduction across borders: The role of legal frameworks

2017 ◽  
Vol 60 (2) ◽  
pp. 224-245 ◽  
Author(s):  
Ola Bergström
Keyword(s):  
Multinational Corporations ◽  
Human Resource ◽  
Host Country ◽  
Human Resource Practices ◽  
Institutional Environments ◽  
Foreign Subsidiaries ◽  
Workforce Reduction ◽  
Practice Transfer ◽  
Legal Frameworks

This article reports on a case study of a Swedish multinational corporation where human resource practices were successfully transferred to its foreign subsidiaries in the context of extensively regulated host country institutional environments, offering an opportunity to provide a deeper understanding of the role of legal frameworks when transferring human resource practices within multinational corporations. The findings indicate that the transfer of human resource practices was not simply a matter of passively adapting to host country legal frameworks. A more balanced conceptualisation of the role of legal frameworks in human resource practice transfer is needed, including a view of law as negotiable and open to interpretation and that host country institutional environments can also contribute to and support multinational corporations to transfer human resource practices across foreign subsidiaries.

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