They concluded that financing investments using retained profits were more profitable than using borrowed funds. This paper uses a sample of 389 banks in 41 SSA countries to study the determinants of bank profitability. This study investigates the determinants of Chinese outward direct investment (ODI) and the extent to which three special explanations (capital market imperfections, special ownership advantages and institutional factors) need to be nested within the general theory of the multinational firm. If the borrowing becomes expensive, there would be a greater emphasis on the retained earnings even with limited profits. The firms retained some fund from their profit for their upcoming situation such like expansion of business/projects etc, so the firm can use this source also for financing which is very cheap as compared to other. I. These profits are reinvested in the business towards working capital requirements and for purchasing of fixed assets. As such, the policy framed by the management regarding the distribution of earnings to the shareholders as dividend is known as dividend policy. Retained earnings are referred to as that part of earnings or profit that is not distributed to the shareholders as dividends. Investors seeking high current income and limited capital growth prefer companies with high Dividend payout ratio. We find that apart from credit risk, higher returns on assets are associated with larger bank size, activity diversification, and private ownership. Determinants of capitalstructure 1. This work examined the determinants of retained earnings of quoted manufacturing firms in Nigeria. The study is anchored on Pecking Order Theory while an ex-post facto research design was adopted wherein secondary data sourced from financial statements of chosen quoted manufacturing firms in Nigeria covering a period of 10 years (2009 to 2018) were used for analysis. They claim current earnings do not really affect the firm’s ability to pay dividends. Objectives of the Study the company and also this study will The main objective of this study is to evaluate the effect of financial determinants on the retained earnings On the other hand, our study complements the international literature by providing current results on the determinants of income smoothing by Tunisian companies such as debt, the size of the company, the industry, the leaders in capital and audit quality. Retained profits or earnings are profit left after taxes and dividends are paid. In addition, the study found a negative and statistical significant impact of the concentration ratio on profitability. Furthermore, Malik (2011) tested the profitability of 35 life and non-life insurance companies in Pakistan. explore the determinants of the capital structure of Chinese listed companies. 2. REVIEW OF LITERATURE Capital structure is defined as the specific mix of debt and equity a firm uses to finance its operations. While non-listed firms ploughed back at least 11% of their profits, listed firms used at most 9% during the period. 2. As prescribed by the central government, a part (not exceeding 10%) of the net profits after tax of a financial year have to be compulsorily transferred to reserve by a company before declaring dividends for the year. Having retained earnings will lead the company into paying federal and state taxes. So profit, if retained, remains unutilized for long time or utilized in short -term investment opportunities which would yield low return on investment. On the other hand, retained earnings represent a funding source. Dividend policy determines the allocation of earnings payable to shareholders and earnings to be retained. It can also … This can be attributed to the fact that non-listed firms are generally smaller and are more likely to be owner-managed and thus, profits could be a major source of . Reinvested earnings (profit reinvestments) of multinational subsidiaries refers to subsidiaries reinvesting their own retained earnings into the existing operations. Determinants of leverage and agency problems By De Jong, A. Dijk, Link To Publication, Hans Degryse, Uli Hege, Piet Moerl, Aswin Van Oijen, Miguel Rosellón Cifuentes and Chris Veld Abstract Keywords: Retained Earnings, Multiple linear regression, PAT, DP, RES, CR, DER, INVS, INV, DEP. Log of retained earnings, profit after tax, and total assets were used while earning per share and dividend per share were not logged. Costs and losses on account of underpricing firms always matter and displayer of the firms always matter and displayer the. Profits as the specific mix of debt and equity a firm uses to finance its.. 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