The advantage is that managers can completely control the daily business activities of subsidiaries in the target market and ensure that valuable technologies, processes and other intangible assets remain in the subsidiaries. The disadvantage is that this method may cost a lot of money, and the company must raise funds internally or in the financial market to obtain funds. However, for small and medium-sized enterprises, it is often difficult to obtain sufficient funds.
Dividends are dividends paid to investors by joint-stock companies every year according to a certain proportion of their share in profits. It is the return on investment of listed companies to shareholders.