It has been suggested that firms with foreign operations stockpile large amounts of cash, primarily in their foreign subsidiaries, because bringing the cash home involves paying a repatriation tax on foreign income. This implies that the stock market should value foreign-held cash less than...

This paper explores how affiliates of multinational corporations save liquidity when facing a transitory cash-flow shock. For this a panel is first built of non-publicly traded copper mines in South America between 2001 and 2012, most of them set up as Foreign Direct Investment (FDI). This...

U.S. multinational firms hold significantly more cash than domestic firms. I study this cash differential using a dynamic model featuring corporate physical and intangible investment, cross-border decisions, and financial policies. I find that the cash differential diminishes by 42% if...

Prior to 2018, U.S. repatriation taxes motivated companies to retain cash offshore. Using confidential jurisdiction-specific data from the Bureau of Economic Analysis, we find that firms with high tax-induced foreign cash have approximately 3.3 percent higher domestic liabilities relative to...

This paper investigates whether R&D influences cash holdings differently for multinationals than for domestic companies. Theory suggests that R&D impacts cash holdings positively in general and might do so to a bigger extent for multinationals, mainly because firms can better protect their...

Employing a panel dataset of Vietnamese non-financial listed firms, we find that firms with greater foreign shareholdings are aligned with higher quality of financial disclosure. More specially, we find that greater foreign shareholdings are associated with (i) lower earnings management; (ii)...

Drawing upon key arguments of prevailing theoretical perspectives in international business, this study aims to explain the ownership and market entry strategies of emerging country multinational enterprises (MNE) in a transition country. To this end, the Turkish MNEs' ownership (joint venture...