Assessing Foreign Subsidiary Performance: The Currency Choice of U.K. MNCs

This paper examines the extent of foreign currency and/or parent company currency financial measures used by 105 U.K.-based MNCs in the process of evaluating foreign subsidiary operations and their managers' performance. The results of the empirical study indicate a preference towards the use of local currency measures and the extent of this preference tends to be greater than those found in recent similar studies of U.S.-based MNCs.