国际企业的财务管理.ppt

1、11. 国际企业的财务管理,国际企业的财务管理 国际企业的税收管理 国际融资战略与渠道 国际企业的资金运用 外汇风险与防范,Accounting information and capital flows,Determinants of national accounting standards,Relationship between business and providers of capital,Three external sources of capital: Individual investors Buying shares and bonds Banks. Loan capi

2、tal Government Make loans or investment,Importance of each varies from country to country,Political and economic ties with other countries,Accounting convergence: Influence of NAFTA Influence of the former British Empire Influence of the European Union,Inflation accounting,Historic cost principle: A

3、ssumes currency is not losing value to inflation Most significant impact in the area of asset valuation Appropriateness varies with inflation Current cost accounting: Factors out inflation Used in Great Britain until inflation rate declined,Level of development,Developed countries have more sophisti

4、cated accounting procedures Accounting problems are more complex Sophisticated capital markets Lenders require comprehensive reports Educated workforce can perform complex accounting functions,Culture,Hofstedes uncertainty avoidance has an impact on accounting systems Low uncertainty avoidance - the

5、se countries tend to have strong independent auditing professions that ensure a firms compliance with rules,Accounting clusters,Few countries have identical accounting systems. Similarities exist in clusters,British-American-Dutch Group,Firms raise capital from investors. Accounting systems designed

6、 to inform investors,Have close ties to banks. Accounting practices meet banks needs.,South American Group,Countries have experienced persistent and rapid inflation. Accounting principles reflect the inflation.,Accounting clusters,Europe-Japan Group,National and international standards,Diverse accou

7、nting practices are enshrined in national accounting and auditing standards Accounting standards: Rules for preparing financial statements Auditing standards: Specify rules for performing an audit,Lack of comparability,One result of national differences in auditing and accounting standards is lack o

8、f comparability of financial reports With growth of global capital markets both transnational financing and transnational investment have grown Firm has to explain to investors why its financial position looks different in two accountings,International standards,Efforts to harmonize accounting stand

9、ards across countries Formation of International Accounting Standards Board Members represent 79 countries Responsible for formulating international accounting standards (IAS) Has issued over 30 IAS Difficult to get requisite votes Voluntary compliance Recognition is growing,Multinational consolidat

10、ion and currency translation,Subsidiaries of multinationals are separate legal entities but not separate economic entities Transactions among members of a corporate family not included in consolidated financial statements. Only assets, liabilities revenues and expenses statements with external trade

11、 parties are shown Purpose is to provide accounting info about a group of companies that recognizes economic interdependence (subsidiaries) Financial statements of subsidiarys are prepared in the local currency For the consolidated accounts of a Multinational these accounts have to be then converted

12、 into currency of Multinationals home country,Currency translation,The current rate method: Exchange rate at the date on the balance sheet is used to translate foreign subsidiary financial statements into home country currency Incompatible with historic cost principle The temporal method: Translates

13、 foreign subsidiary assets into home-country currency at the time of purchase of the asset Changing exchange rates may mean the balance sheet may not balance!,Accounting aspects of control systems,Annual control process involves three steps: Head office and subunit management jointly determine subun

14、it goals for the coming year. Throughout year, head office monitors subunit performance against agreed goals. If subunit fails to achieve goals, head office intervenes to determine why the shortfall occurred, taking corrective action when appropriate.,Exchange rate combinations in the control proces

15、s,Fig19.3,Accounting aspects of control systems,Lessard- Lorange Model: Three exchange rates used to translate foreign currency into corporate currency for budget and performance purposes. The initial rate, the spot exchange rate when the budget is adopted. The projected rate, the spot exchange fore

16、cast for the end of budget period (i.e., the forward rate) The ending rate, the spot exchange rate when the budget and performance are being compared.,Transfer pricing and control systems,Transfer prices introduce significant distortions into the control process Transfer price must be taken into acc

17、ount when setting budgets and evaluating a subsidiarys performance.,Separation of subsidiary and manager performance,Valuation of a subsidiary should be separate from the evaluation of the subsidiary manager Managers evaluation should take into consideration how hostile or benign the countries envir

18、onment is for business and make allowances over items the manager has no control e.g. inflation rates, interest rates exchange rates,11.2 国际企业的税收管理,11.2.1 国际税收及制度: 双重课税: 单边方式(抵,免扣); 多边方式(协商分配, 防偷漏税等) 经济全球化和税收制度: 资金与劳务流动自由且加快; 税率趋同; 从对收入增税改为对消费和固定财产增税,11.2 国际企业的税收管理,11.2.2 国际税收的类型: 公司所得税(Corporate in

19、come taxes) 预提税 (Withholding taxes)(股息,利息,特许权使用费等) 增值税 (Value-added taxes) 关税 (Tariffs),11.2 国际企业的税收管理,11.2.3 国际企业避税与避税港 国际企业避税(Tax avoidance)的方法: 转移生产和价格; 利用避税港; 选择合适的机构身份,11.2 国际企业的税收管理,避税港(International Tax Havens) 类型: 没有所得税,资本收益税或商业,房产税的避税港, 大部分分布在加勒比海地区, 如巴哈马, 百慕大和开曼群岛 征收一定税收, 但税率很低, 如英属维尔京群岛 (

20、British Virgin Island), 所得税率仅12% 仅对国内来源的收入增税, 如HK和巴拿马 允许税收特权, (特区, 特种行业等, 如希腊的海运业, 英国的金融业等),11.2 国际企业的税收管理,避税港的选择: 政治经济的稳定性和政府的公正性 税收情况及优惠政策 签订税收条约的情况 外汇管制 公司注册法 银行机构体系 交通通讯设施,11.3 国际融资战略,11.3.1 资金来源: 企业内部 东道国 国际代理机构 (World Bank等) 第三国(银行, 证券或债券等),11.3 国际融资战略,11.3.2 对外贸易融资: 预付 信用证 (Letter of Credit,

21、L/C) 票据 (Document against Payment, D/P) 贴现 (Discounting) 出售应收账款 (Factoring) 福费廷Forfaiting,11.4 国际企业的资金运用,资金规模 使用决策 现金控制,Case: Global treasury management at Proctor & Gamble,60% of P &Gs revenues from international sales Products sold in 130 countries Has centralized global treasury management functi

22、on Management of all foreign exchange transactions P& G trades currency between subsidiaries, cutting out banks and saving on transaction costs P & G is pooling foreign exchange risks and buying an purchasing an umbrella option to cover risks associated with various currency options Subsidiaries can

23、 invest in and borrow money from other P &G entities instead of dealing with banks,Scope of financial management,Scope of financial management includes three sets of related decisions: Investment decisions Decisions about what activities to finance Financing decisions Decisions about how to finance

24、those activities. Money management decisions Decisions about how to manage the firms financial resources most efficiently,Investment decisions,Capital budgeting: Quantifies the benefits, costs and risks of an investment Managers can reasonably compare different investment alternatives within and acr

25、oss countries Complicated process: Must distinguish between cash flows to project and those to parent Political and economic risk can change the value of a foreign investment Connection between cash flows to parent and the source of financing must be recognized,Project and parent cash flows,Project

26、cash flows may not reach the parent: Host-country may block cash-flow repatriation Cash flows may be taxed at an unfavorable rate Host government may require a percentage of cash flows to be reinvested in the host country,Adjusting for political and economic risk,Political risk: Expropriation - Iran

27、ian revolution, 1979 Social unrest - after the breakup of Yugoslavia, company assets were rendered worthless Political change - may lead to tax and ownership changes Examples. Collapse of communism in Eastern Europe Attack on the world trade center Economic risk Inflation,Financing decisions,When co

28、nsidering options for financing a foreign investment, Int. businesses have to consider two factors Source of financing Financial structure,Source of financing,Global capital markets for lower cost financing. Impact of host country-host-country may require projects to be locally financed through debt

29、 or equity Limited liquidity raises the cost of capital. Host-government may offer low interest or subsidized loans to attract investment. Impact of local currency (appreciation/depreciation) influences capital and financing decisions,Financial structure,Financial structure: Debt/equity ratios vary

30、with countries. Tax regimes Follow local capital structure norms? More easily evaluate return on equity relative to local competition Good for companys image Best recommendation: adopt a financial structure that minimizes the cost of capital,Global money management-The efficiency objective,Minimizin

31、g cash balances: Money market accounts - low interest - high liquidity Certificates of deposit - higher interest - lower liquidity Reducing transaction costs (cost of exchange): Transaction costs: changing from one currency to another Transfer fee: fee for moving cash from one location to another,Gl

32、obal money managementThe tax objective,Countries tax income earned outside their boundaries by entities based in their country. Can lead to double taxation Tax credit allows entity to reduce home taxes by amount paid to foreign government Tax treaty is an agreement between countries specifying what

33、items will be taxed by authorities in country where income is earned Deferral principle specifies that parent companies will not be taxed on foreign income until the dividend is received Tax haven is used to minimize tax liability,Corporate income tax rates,Moving money across borders: Attaining eff

34、iciencies and reducing taxes,Unbundling: A mix of techniques to transfer liquid funds from a foreign subsidiary to the parent company without piquing the host-country Dividend remittances Royalty payments and fees Transfer Prices Fronting loans Selecting a particular policy is limited when a foreign

35、 subsidiary is part owned by a local joint-venture partner or local stockholders,Dividend remittances,Most common method of transfer. Dividend varies with: tax regulations. Foreign exchange risk. Age of subsidiary. Extent of local equity participation.,Royalty payments and fees,Royalties represent t

36、he remuneration paid to owners of technology, patents or trade names for their use by the firm. Common for parent to charge a subsidiary for technology, patents or trade names transferred to it. May be levied as a fixed amount per unit sold or percentage of revenue earned. Fees are compensation for

37、professional services or expertise supplied to subsidiary. Management fees or technical assistance fees. Fixed charges for services provided,Transfer prices,Price at which goods or services are transferred within a firms entities. Position funds within a company. Move funds out of country by setting

38、 high transfer fees or into a country by setting low transfer fees. Movement can be within subsidiaries or between the parent and its subsidiaries.,Benefits of manipulating transfer prices,Reduce tax liabilities by using transfer fees to shift from a high-tax country to a low-tax country. Reduce for

39、eign exchange risk exposure to expected currency devaluation by transferring funds. Can be used where dividends are restricted or blocked by host-government policy. Reduce import duties (ad valorem) by reducing transfer prices and the value of the goods.,Problems with transfer pricing,Few government

40、s like it. Believe (rightly) that they are losing revenue. Has an impact on management incentives and performance evaluations. Inconsistent with a profit center. Managers can hide inefficiencies.,Fronting loans,Loan between a parent and subsidiary is channeled through a financial intermediary (bank)

41、. Allows circumvention of host-country restrictions on remittance of funds from subsidiary to parent. Provides certain tax advantages.,An example of the tax aspects of a fronting loan,Techniques for global money management,Need cash reserves to service accounts and insuring against negative cash flo

42、ws. Should each subsidiary hold its own cash balance? By pooling, firm can deposit larger cash amounts and earn higher interest rates. If located in a major financial center can get information on good investment opportunities. Can reduce the total size of cash pool and invest larger reserves in higher paying, long term, instruments.,11.5 外汇风险与防范,交易风险 转换风险 业务风险,Managing foreign exchange risk,Risk that future changes in a countrys exchange rate will hurt the firm. Transaction exposure: extent income from transactions is a