There is a prevalent opinion in the corporate arena that the foreign companies are earning more but are less concerned with reinvesting their earnings in the foreign countries in which they operate and are more concer...There is a prevalent opinion in the corporate arena that the foreign companies are earning more but are less concerned with reinvesting their earnings in the foreign countries in which they operate and are more concerned in profit appropriations for quick repatriation of their investments by way of declaring high dividend payments. As compared to the foreign companies, domestic companies in India are relatively more concerned for reinvesting their profits and help to trigger the capital accumulation and industrial growth. This practice of comparatively paying higher dividend by foreign companies in India, if proved, supports the view that foreign companies are least concerned with the industrial growth of the country in which they operate. Hence the analyses of the dividend payments and the retained earnings of foreign and domestic firms assume economic importance. Considering the above hypothesis and the importance of the study, this paper made an attempt to empirically test the opinion and bring out any significant differences in the profitability and dividend payments between the two groups often pharmaceutical companies operating in India for the period of last 20 years.展开更多
This work studies entry and technology transfer in a Cournot model where there are two domestic firms. A foreign firm has a patent on a technological innovation that reduces the costs of all firms. The foreign firm ca...This work studies entry and technology transfer in a Cournot model where there are two domestic firms. A foreign firm has a patent on a technological innovation that reduces the costs of all firms. The foreign firm can license the innovation to one or both domestic firms. The authors consider two standard licensing policies： （1） auction policy and （2） unit royalty policy. The foreign firm can license the innovation either by staying outside the domestic market, or it can enter the market, license the innovation and compete with the domestic firms. The authors show that （1） when the foreign firm stays outside, it is never optimal for it to use royalties, （2） if it licenses the innovation by entering the industry, then royalties could be optimal and （3） when it decides on its entry strategy by taking its optimal licensing policies into account, it always finds it optimal to enter the domestic market.展开更多
文摘There is a prevalent opinion in the corporate arena that the foreign companies are earning more but are less concerned with reinvesting their earnings in the foreign countries in which they operate and are more concerned in profit appropriations for quick repatriation of their investments by way of declaring high dividend payments. As compared to the foreign companies, domestic companies in India are relatively more concerned for reinvesting their profits and help to trigger the capital accumulation and industrial growth. This practice of comparatively paying higher dividend by foreign companies in India, if proved, supports the view that foreign companies are least concerned with the industrial growth of the country in which they operate. Hence the analyses of the dividend payments and the retained earnings of foreign and domestic firms assume economic importance. Considering the above hypothesis and the importance of the study, this paper made an attempt to empirically test the opinion and bring out any significant differences in the profitability and dividend payments between the two groups often pharmaceutical companies operating in India for the period of last 20 years.
文摘This work studies entry and technology transfer in a Cournot model where there are two domestic firms. A foreign firm has a patent on a technological innovation that reduces the costs of all firms. The foreign firm can license the innovation to one or both domestic firms. The authors consider two standard licensing policies： （1） auction policy and （2） unit royalty policy. The foreign firm can license the innovation either by staying outside the domestic market, or it can enter the market, license the innovation and compete with the domestic firms. The authors show that （1） when the foreign firm stays outside, it is never optimal for it to use royalties, （2） if it licenses the innovation by entering the industry, then royalties could be optimal and （3） when it decides on its entry strategy by taking its optimal licensing policies into account, it always finds it optimal to enter the domestic market.
