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

1. Aggarwal, R., & Kyaw, N. A. (2008). Internal capital networks as a source of MNC competitive advantage: Evidence from foreign subsidiary capital structure decisions. Research in International Business and Finance, 22(3), 409–439.10.1016/j.ribaf.2008.02.003Search in Google Scholar

2. Agrawal, A., & Knoeber, C. R. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31(3), 377–397.10.2307/2331397Search in Google Scholar

3. Al-Shboul, M., & Anwar, S. (2014). Foreign exchange rate exposure: Evidence from Canada. Review of Financial Economics, 23(1), 18–29.10.1016/j.rfe.2013.12.001Search in Google Scholar

4. Altshuler, R. (1995). Do repatriation taxes matter? Evidence from the tax returns of US multinationals. In The effects of taxation on multinational corporations (pp. 253–276). University of Chicago Press. In The effects of taxation on multinational corporations (pp. 253–276). University of Chicago Press.Search in Google Scholar

5. Altshuler, R., Newlon, T. S., & Slemrod, J. (1993). The effects of US tax policy on the income repatriation patterns of US multinational corporations. In Studies in international taxation (pp. 77–116). University of Chicago Press.Search in Google Scholar

6. Amberger, H., Markle, K., & Samuel, D. M. P. (2018). Repatriation Taxes, Internal Agency Conflicts, and Subsidiary-level Investment Efficiency. WU International Taxation Research Paper Series No. 2018-06.10.2139/ssrn.3138823Search in Google Scholar

7. Ambos, B., Kunisch, S., Leicht-Deobald, U., & Steinberg, A. S. (2019). Unravelling agency relations inside the MNC: the roles of socialization, goal conflicts and second principals in headquarters-subsidiary relationships. Journal of World Business, 54(2), 67–81.10.1016/j.jwb.2018.10.001Search in Google Scholar

8. Anderson, T. W., & Hsiao, C. (1981). Estimation of dynamic models with error components. Journal of the American statistical Association, 76(375), 598-606.10.1080/01621459.1981.10477691Search in Google Scholar

9. Ang, J. S., Cole, R. A., & Lin, J. W. (2000). Agency costs and ownership structure. The Journal of Finance, 55(1), 81–106.10.1111/0022-1082.00201Search in Google Scholar

10. Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The review of economic studies, 58(2), 277-297.10.2307/2297968Search in Google Scholar

11. Auerbach, A. J. (1979). Wealth maximization and the cost of capital. The Quarterly Journal of Economics, 93(3), 433–446.10.2307/1883167Search in Google Scholar

12. Beyer, B., Downes, J., & Rapley, E. T. (2017). Internal capital market inefficiencies, shareholder payout, and abnormal leverage. Journal of Corporate Finance, 43(C), 39–57.10.1016/j.jcorpfin.2016.12.009Search in Google Scholar

13. Blouin, J. L., Krull, L. K., & Robinson, L. A. (2012). Is US multinational dividend repatriation policy influenced by reporting incentives? The Accounting Review, 87(5), 1463–1491.10.2308/accr-50193Search in Google Scholar

14. Bond, S. R. (2002). Dynamic panel data models: a guide to micro data methods and practice. Portuguese Economic Journal, 1(2), 141–162.10.1007/s10258-002-0009-9Search in Google Scholar

15. Brada, J.C., & Tomšík, V. (2009) The Foreign Direct Investment Financial Life Cycle: Evidence of Macroeconomic Effects from Transition Economies, Emerging Markets Finance and Trade, 45:3, 5-2010.2753/REE1540-496X450301Search in Google Scholar

16. Bradford, D. F. (1981). The incidence and allocation effects of a tax on corporate distributions. Journal of Public Economics, 15(1), 1–22.10.1016/0047-2727(81)90049-9Search in Google Scholar

17. Campbell, J. L., Dhaliwal, D. S., Krull, L. K., & Schwab, C. M. (2018). US multinational corporations’ foreign cash holdings: An empirical estimate and its valuation consequences. Working Paper. University of Georgia, Athens, GA.Search in Google Scholar

18. Clare, G. & Gang, I.N. (2010) Exchange Rate and Political Risks, Again, Emerging Markets Finance and Trade, 46:3, 46-5810.2753/REE1540-496X460303Search in Google Scholar

19. Desai, M. A., Foley, C. F., & Hines Jr, J. R. (2001). Repatriation taxes and dividend distortions. National Tax Journal, 54(4).10.17310/ntj.2001.4.09Search in Google Scholar

20. Desai, M. A., Foley, C. F., & Hines, J. R. (2004). A multinational perspective on capital structure choice and internal capital markets. The Journal of Finance, 59(6), 2451–2487.10.1111/j.1540-6261.2004.00706.xSearch in Google Scholar

21. Desai, M. A., Foley, C. F., & Hines Jr, J. R. (2007). Dividend policy inside the multinational firm. Financial Management, 5–26.Search in Google Scholar

22. Desai, M. A., Foley, C. F., & Hines Jr, J. R. (2008). Capital structure with risky foreign investment. Journal of Financial Economics, 88(3), 534–553.10.1016/j.jfineco.2007.05.002Search in Google Scholar

23. Dodonova, A., & Khoroshilov, Y. (2007). Income repatriation decision for multinational corporations: Tax issues. Journal of Accounting and Public Policy, 26(3), 376–384.10.1016/j.jaccpubpol.2007.03.003Search in Google Scholar

24. Duygun, M., Guney, Y., & Moin, A. (2018). Dividend policy of Indonesian listed firms: The role of families and the state. Economic Modelling.10.1016/j.econmod.2018.07.007Search in Google Scholar

25. Egger, P., Merlo, V., Ruf, M., & Wamser, G. (2015). Consequences of the New UK Tax Exemption System: Evidence from Micro-level Data. The Economic Journal, 125(589), 1764–1789.10.1111/ecoj.12190Search in Google Scholar

26. Eiteman, D. K., Stonehill, A. I., & Moffett, M. H. (2012). Multinational business finance. Pearson Higher Ed.Search in Google Scholar

27. Fama, E. F., & French, K. R. (2001). Disappearing dividends: changing firm characteristics or lower propensity to pay? Journal of Financial Economics, 60(1), 3–43.10.1016/S0304-405X(01)00038-1Search in Google Scholar

28. Fleming, G., Heaney, R., & McCosker, R. (2005). Agency costs and ownership structure in Australia. Pacific-Basin Finance Journal, 13(1), 29–52.10.1016/j.pacfin.2004.04.001Search in Google Scholar

29. Florackis, C. (2008). Agency costs and corporate governance mechanisms: Evidence for UK firms. International Journal of Managerial Finance, 4(1), 37–59.10.1108/17439130810837375Search in Google Scholar

30. Foley, C. F., Hartzell, J. C., Titman, S., & Twite, G. (2007). Why do firms hold so much cash? A tax-based explanation. Journal of Financial Economics, 86(3), 579–607.10.1016/j.jfineco.2006.11.006Search in Google Scholar

31. Francis, B. B., Hasan, I., Hunter, D. M., & Zhu, Y. (2017). Do managerial risk-taking incentives influence firms’ exchange rate exposure? Journal of Corporate Finance, 46, 154–169.10.1016/j.jcorpfin.2017.06.015Search in Google Scholar

32. Giacobbe, F., Matolcsy, Z., & Wakefield, J. (2016). An investigation of wholly-owned foreign subsidiary control through transaction cost economics theory. Accounting & Finance, 56(4), 1041–1070.10.1111/acfi.12118Search in Google Scholar

33. Golit, P., Salisu, A., Akintola, A., Nsonwu, F., and Umoren, I., (2019). Exchange rate and interest rate differential in G7 countries, Bulletin of Monetary Economics and Banking, 22, 263-286.10.21098/bemp.v22i3.1147Search in Google Scholar

34. Gong, Y. (2003). Subsidiary staffing in multinational enterprises: Agency, resources, and performance. Academy of Management Journal, 46(6), 728–739.10.5465/30040664Search in Google Scholar

35. Grubert, H. (1998). Taxes and the division of foreign operating income among royalties, interest, dividends and retained earnings. Journal of Public Economics, 68(2), 269–290.10.1016/S0047-2727(97)00077-7Search in Google Scholar

36. Hai, J., Min, H. & Barth, J. (2018) On Foreign Shareholdings and Agency Costs: New Evidence from China, Emerging Markets Finance and Trade, 54:12, 2815-283310.1080/1540496X.2017.1412949Search in Google Scholar

37. Harford, J., Wang, C., & Zhang, K. (2017). Foreign cash: Taxes, internal capital markets, and agency problems. The Review of Financial Studies, 30(5), 1490–1538.10.1093/rfs/hhw109Search in Google Scholar

38. Hartman, D. G. (1985). Tax policy and foreign direct investment. Journal of Public Economics, 26(1), 107–121.10.1016/0047-2727(85)90041-6Search in Google Scholar

39. Hasegawa, M., & Kiyota, K. (2017). The effect of moving to a territorial tax system on profit repatriation: Evidence from Japan. Journal of Public Economics, 153, 92–110.10.1016/j.jpubeco.2017.06.010Search in Google Scholar

40. Hines Jr, J. R., & Hubbard, R. G. (1990). Coming home to America: Dividend repatriations by US multinationals. In Taxation in the global economy (pp. 161–208). University of Chicago Press.10.3386/w2931Search in Google Scholar

41. Huizinga, H., Laeven, L., & Nicodeme, G. (2008). Capital structure and international debt shifting. Journal of financial economics, 88(1), 80-118., 88, 80–118. https://doi.org/10.1016/j.jfineco.2007.05.006.10.1016/j.jfineco.2007.05.006Search in Google Scholar

42. Iyke, B.N., (2019). A test of the efficiency of the foreign exchange market in Indonesia, Bulletin of Monetary Economics and Banking, 31, 439-464.10.21098/bemp.v0i0.976Search in Google Scholar

43. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 76(2), 323–329.Search in Google Scholar

44. Juhro, S.M., and Aulia, A.F., (2019). New sources of growth: The role of frugal innovation and transformational leadership, Bulletin of Monetary Economics and Banking, 22, 383-402.10.21098/bemp.v22i3.1195Search in Google Scholar

45. King, M. A. (1977). Public policy and the corporation. Chapman and Hall; New York: Wiley.Search in Google Scholar

46. Kostova, T., Nell, P. C., & Hoenen, A. K. (2018). Understanding agency problems in headquarters-subsidiary relationships in multinational corporations: a contextualized model. Journal of Management, 0149206316648383.10.1177/0149206316648383Search in Google Scholar

47. Lehmann, A., & Mody, A. (2004). ‘“International dividend repatriations”’, IMF working paper wp/04/5.10.5089/9781451842210.001Search in Google Scholar

48. Lintner, J. (1956). Distribution of incomes of corporations among dividends, retained earnings, and taxes. The American Economic Review, 46(2), 97–113.Search in Google Scholar

49. M. Brajcich, A., L. Friesner, D., & Q. McPherson, M. (2013). Key determinants of repatriated earnings by US multinational enterprises. Multinational Business Review, 21(3), 269–289.10.1108/MBR-05-2013-0028Search in Google Scholar

50. Moore, A. B. (2011). Essays on the Repatriation Policies of Multinational Firms. UC Berkeley. https://doi.org/Available from ProQuest Dissertations and Theses, (Order No. 3616143).Search in Google Scholar

51. Narayan, S., (2019). Does Fntech matter for Indonesia’s economic growth? Bulletin of Monetary Economics and Banking, 22, 437-456.10.21098/bemp.v22i4.1237Search in Google Scholar

52. Ngo, T. (2017). Exchange rate exposure of REITs. The Quarterly Review of Economics and Finance, 64, 249–258.10.1016/j.qref.2016.09.002Search in Google Scholar

53. Nickell, S. (1981). Biases in dynamic models with fixed effects. Econometrica: Journal of the Econometric Society, 1417-1426.10.2307/1911408Search in Google Scholar

54. O’Donnell, S. W. (2000). Managing foreign subsidiaries: agents of headquarters, or an interdependent network? Strategic Management Journal, 21(5), 525–548.10.1002/(SICI)1097-0266(200005)21:5<525::AID-SMJ104>3.0.CO;2-QSearch in Google Scholar

55. Parlapiano, F., Alexeev, V., & Dungey, M. (2017). Exchange rate risk exposure and the value of European firms. The European Journal of Finance, 23(2), 111–129.10.1080/1351847X.2015.1072570Search in Google Scholar

56. Rath, B.N., & Hermawan, D., (2019) Do information and communication technologies foster economic growth in Indonesia? Bulletin of Monetary Economics and Banking, 22, 103-122.10.21098/bemp.v22i1.1041Search in Google Scholar

57. Roth, K., & O’donnell, S. (1996). Foreign subsidiary compensation strategy: An agency theory perspective. Academy of Management Journal, 39(3), 678–703.10.2307/256659Search in Google Scholar

58. Saini, N., & Singhania, M. (2018). Determinants of FDI in developed and developing countries: A quantitative analysis using GMM. Journal of Economic Studies, 45(2), 348–382.10.1108/JES-07-2016-0138Search in Google Scholar

59. Skinner, D. J. (2008). The evolving relation between earnings, dividends, and stock repurchases. Journal of Financial Economics, 87(3), 582–609.10.1016/j.jfineco.2007.05.003Search in Google Scholar

60. Tahir, M., & Mushtaq, M. (2016). Determinants of Dividend Payout: Evidence from listed Oil and Gas Companies of Pakistan. The Journal of Asian Finance, Economics and Business (JAFEB), 3(4), 25–37.10.13106/jafeb.2016.vol3.no4.25Search in Google Scholar

61. Wahab, H.A., Saiti, B., Rosly, S.A. & Masih, M. (2017) Risk-Taking Behavior and Capital Adequacy in a Mixed Banking System: New Evidence from Malaysia Using Dynamic OLS and Two-Step Dynamic System GMM Estimators, Emerging Markets Finance and Trade, 53:1, 180-19810.1080/1540496X.2016.1162151Search in Google Scholar

62. Xing, J. (2018). Territorial tax system reform and multinationals’ foreign cash holdings: New evidence from Japan. Journal of Corporate Finance, 49, 252–282.10.1016/j.jcorpfin.2018.01.012Search in Google Scholar

63. Xu, H. (2016) Financial Intermediation and Economic Growth in China: New Evidence from Panel Data, Emerging Markets Finance and Trade, 52:3, 724-73210.1080/1540496X.2016.1116278Search in Google Scholar

64. Yusof, Y., & Ismail, S. (2016). Determinants of dividend policy of public listed companies in Malaysia. Review of International Business and Strategy, 26(1), 88–99.10.1108/RIBS-02-2014-0030Search in Google Scholar