Journal of Applied Finance & Banking

A comparison study of the influences of internationalization on financing and dividend among the electronic industries of Taiwan and US

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• Abstract

  This paper used the internationalized electronic industries in the US and Taiwan from 1999 to 2008 as the subjects to compare their debt ratio and the scale of cash dividend as the reference for financing strategies and decision. The evidence showed that the debt ratio and the cash dividend payout ratio of the internationalized electronic industries in the US were lower than those in Taiwan. Subject to the uniqueness and the high profit ability of the internationalized electronic industries in the US, they have more earnings and inside capital so that the debt ratio is lower. Also, the internationalized electronic industries in the US have higher internationalization level with higher system risk level that they tend to keep the cash against any incidents so the payout cash dividend is less.