Repatriation of earnings
Repatriation of earnings is the cash flow, usually in the form of dividends or royalties, from the foreign branch or subsidiary to the parent company. These cash flows must be converted to the currency of the parent and thus are subject to future exchange rate changes. A foreign government may restrict the amount of cash that may be repatriated.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Repatriation of earnings. The cash flow, usually in the form of dividends or royalties, from the foreign branch or subsidiary to the parent company. These cash flows must be converted to the currency of the parent and thus are subject to future exchange rate changes. A foreign government may restrict the amount of cash that may be repatriated.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Repatriation of earnings. The process of sending cash flows from a foreign subsidiary back to the parent company.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
