<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></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.

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

Universiti Sains Malaysia and University of Turbat

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 Public License.

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....

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

Published Online: Jul 16, 2020

Page range: 267 - 290

DOI: https://doi.org/10.2478/jcbtp-2020-0031

Keywords
Exchange rate fluctuations, Credit supply, Dividend repatriation policy, Generalised method of moments, Multinational corporations

© 2020 Muhammad Tahir et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 Public License.

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

Published Online: Jul 16, 2020

Page range: 267 - 290

DOI: https://doi.org/10.2478/jcbtp-2020-0031

KeywordsExchange rate fluctuations, Credit supply, Dividend repatriation policy, Generalised method of moments, Multinational corporations

© 2020 Muhammad Tahir et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 Public License.

Keywords
Exchange rate fluctuations, Credit supply, Dividend repatriation policy, Generalised method of moments, Multinational corporations