Determinants of Reinvested Earnings of Multinational Subsidiaries in Emerging Economies
Reinvested earnings (profit reinvestments) of multinational subsidiaries refers to subsidiaries reinvesting their own retained earnings into the existing operations. Retained earnings are a type of internal equity financing, that is, internally generated financing sources (Nguyen and Rugman, 2015). They are important resources to finance incremental investments for continuing expansion and growth of foreign subsidiaries of multinational enterprises (MNEs) from advanced economies operating in emerging economies, as financial markets in host countries are underdeveloped compared to home countries.
KeywordsForeign Direct Investment Host Country Multinational Enterprise Parent Firm Foreign Subsidiary
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