We investigate the value of permanently reinvested earnings (PRE) of foreign subsidiaries of U.S. multinationals. We focus particularly on how firm value is affected by reinvesting PRE in financial rather than operating assets, where the reinvestment in financial assets is to avoid the U.S....

We examine whether differences in international capital mobility across countries are related to country-specific differences in financial reporting environments. We hypothesize that countries where financial accounting environments lead to greater disclosure of value-relevant accounting...