Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Starr's findings account for some of the 19% black-white gap in federal sentencing

Frey says suburbs are aging, cities draw millennials

Pfeffer comments on Fed report that reveals 20-year decline in net worth among American families

More News

Highlights

U-M's campus climate survey results discussed in CHE story

U-M honors James Jackson's groundbreaking work on how race impacts the health of black Americans

U-M is the only public and non-coastal university on Forbes' top-10 list for billionaire production

ASA President Bonilla-Silva takes exception with Chief Justice Roberts' 'gobbledygook' jab

More Highlights

Next Brown Bag

Mon, Jan 22, 2018, noon: Narayan Sastry

Dividend policy inside the multinational firm

Archived Abstract of Former PSC Researcher

Desai, Mihir A., C. Fritz Foley, and James Hines. 2007. "Dividend policy inside the multinational firm." Financial Management, 36(1): 5-26.

This paper examines the determinants of profit repatriation policies for US multinational firms. Dividend repatriations are surprisingly persistent and resemble dividend payments to external shareholders. Tax considerations influence dividend repatriations, but not decisively, as differentially taxed entities feature similar policies and some firms incur avoidable tax penalties. Parent companies requiring cash to fund domestic investments, or to pay dividends to common shareholders, draw on the resources of their foreign affiliates through repatriations. Incompletely controlled affiliates are more likely than others to make regular dividend payments and to trigger avoidable tax costs through repatriations. The results indicate that traditional corporate finance concerns - taxation, costly external finance, and agency problems - are also critical to the internal capital markets of multinational firms.

Browse | Search : All Pubs | Next