Influence of Exchange Rate Fluctuations and Credit Supply on Dividend Repatriation Policy of U.S. Multinational Corporations-Reference-Cited by-同舟云学术

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

Published:2020-07-01 Issue:s1 Volume:9 Page:267-290
ISSN:2336-9205
Container-title:Journal of Central Banking Theory and Practice
language:en
Short-container-title:

Author:

Tahir Muhammad¹,Ibrahim Haslindar²,Zulkafli Abdul Hadi²,Mushtaq Muhammad³

Affiliation:

1. School of Management , Universiti Sains Malaysia and University of Turbat , Pakistan

2. School of Management , Universiti Sains Malaysia , Malaysia

3. Graduate School of Business , Universiti Sains Malaysia and University of Turbat , Pakistan

Abstract

Abstract This 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.

Publisher

Walter de Gruyter GmbH

Subject

Strategy and Management,Economics and Econometrics,Finance

Link

https://www.sciendo.com/pdf/10.2478/jcbtp-2020-0031

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