02109cas a2200265 a 4500 AALejournalIMF002793 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451842210 1018-5941 BD-DhAAL BD-DhAAL Lehmann, Alexander. International Dividend Repatriations / Alexander Lehmann, Ashoka Mody. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Income earned by the branches and subsidiaries of multinational firms can be either reinvested in the host country or repatriated as dividends to the firms' headquarters. Despite the rapid growth of foreign direct investment in the 1990s, there has been relatively limited analysis of the dividend behavior of multinationals. We find that investors in multinationals from the two largest foreign- investing countries-the United Kingdom and the United States-require a steady flow of dividends, consistent with a view that such regular dividend payments are a mechanism through which to discipline host-country managers. In contrast, German investors, who tend to invest in riskier countries, do not appear to demand persistent dividend payments. Changes in income also influence dividends. This payout ratio from income appears, for example, to be lower for less risky countries. Finally, the evidence suggests that dividend payments do not necessarily aggravate the balance of payments position during crises. Mode of access: Internet United States imf Mody, Ashoka. IMF Working Papers; Working Paper ; No. 2004/005 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/005/001.2004.issue-005-en.xml IMF e-Library