Why is it important for a foreign affiliate to have a well-defined dividend policy for repatriating profits

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Why is it important for a foreign affiliate to have a well-defined dividend policy for repatriating profits to its parent corporation?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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