IDEAS home Printed from https://ideas.repec.org/a/ids/ijmefi/v13y2020i2p146-162.html
   My bibliography  Save this article

Impact of repatriation taxes and earned/contributed capital mix on dividend repatriation policy: the moderating role of firm financial maturity

Author

Listed:
  • Muhammad Tahir
  • Haslindar Ibrahim
  • Abdul Hadi Zulkafli
  • Muhammad Mushtaq

Abstract

This study aims to examine the effect of repatriation taxes and earned/contributed capital mix on the dividend repatriation policy of the foreign subsidiaries of US multinational corporations (MNCs) worldwide. In addition, it investigates the moderating effect of firm financial maturity on the relationship between repatriation taxes and dividend repatriation policy. The present study uses secondary data to evaluate the impact of various explanatory variables on dividend repatriation policy over 2006-2016. The difference generalised method of moments (GMM) estimator is applied to estimate the dynamic dividend repatriation models. The results suggest a significant inverse relationship between repatriation taxes and dividend repatriation policy. Further, a significant positive effect of the earned/contributed capital mix on the dividend repatriation policy is identified. Moreover, results indicate that firm financial maturity does not play a statistically significant role in minimising the negative effect of the repatriation tax rate on dividend repatriation policy.

Suggested Citation

  • Muhammad Tahir & Haslindar Ibrahim & Abdul Hadi Zulkafli & Muhammad Mushtaq, 2020. "Impact of repatriation taxes and earned/contributed capital mix on dividend repatriation policy: the moderating role of firm financial maturity," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 13(2), pages 146-162.
    • Handle: RePEc:ids:ijmefi:v:13:y:2020:i:2:p:146-162
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=107699
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tahir, Muhammad & Ibrahim, Haslindar & Zulkafli, Abdul Hadi & Mushtaq, Muhammad, 2020. "Corruption, national culture, law and dividend repatriation policy," Journal of Multinational Financial Management, Elsevier, vol. 57.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmefi:v:13:y:2020:i:2:p:146-162. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=218 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.