The headquarters-subsidiary relations in transnational companies have been a significant research topic in the strategy and international management area. Taking the subsidiaries of European, American and Japanese transnationals in Taiwan as the research sample, this paper empirically investigates the determinants of subsidiary autonomy. Twelve variables from four dimensions have been identified, including: characteristics of subsidiary manager, characteristics of subsidiary, local environment, and the managerial philosophy held by the corporate parent. Empirical evidences show that the main determinants of subsidiary autonomy are: organization commitment of subsidiary manager, international experiences of subsidiary manager, and the relative size of the subsidiary. Findings of this research highlight the significance of the subsidiary factor, which has gained limited attentions in the existing literature.