EVALUATION OF FOREIGN SUBSIDIARIES IN MULTINATIONAL COMPANIES: A CASE STUDY IN 28 COUNTRIES
DOI:
https://doi.org/10.11606/rco.v2i2.34704Keywords:
Foreign Subsidiaries, Evaluation, Multinational UndertakingAbstract
The increase in the number of multinational companies has been setting accounting many challenges. For instance, this kind of undertaking called cross-border is always demanding accounting information before a decision is made, specially those related to foreign subsidiaries development evaluation. The objective of this paper is to analyse the facts that, according to managers, influence the analysis of foreign subsidiaries development evaluation by the headquarters, in a certain multinational company. It was also tested the relation between the difficulties pointed by the managers and the economic and cultural indicators of the countries in the sample. The objective was obtained through questionnaires from a multinational company in the field of food and beverages which were sent to the headquarters (in the US) and to 28 foreign subsidiaries in Europe, Asia, Africa, South America and North America. The results obtained point out to the distress of the managers mainly to what is related to the impact of tributes, currency conversion and the deferred assets evaluation criteria about the development evaluation. The economic indicator that showed a clear relation to the level of satisfaction from the managers was the inflation rate of the correspondent subsidiary country. The cultural values haven't shown any relation to the managers´ perception.Downloads
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