Study On The Impact Of Capital Structure Of Chinese State-holding Transnational Enterprise On Transnational Investment

Transnational Enterprises have been widely concerned by the academic circles and the society as the important actors concerning national economic and political security in the tide of economic globalization. To our state, the transnational Enterprises have special significance, because the majority of Transnational Enterprises are holding by government or state-owned enterprise, which are defined as State-holding Transnational Enterprises in this study. Therefore this study takes the particularity as a starting point and studies the relationship between State-holding Transnational Enterprises’investment and its particularity. And this dissertation builds the model of State-holding Transnational Enterprises’ transnational investment behavior optimization.At present, the existing research mainly focuses on the simple relationship between the two variables —capital structure and investment. There is little literature to analyze this subject from the perspective of enterprise characteristic. Some studies have pointed out that the ownership of Chinese enterprises has a significant impact on the transnational investment, however, which always focus on the overall study of the relationship between the enterprise’ownership and transnational investment, without in-depth analysis of its role mechanism, so the conclusion also has some limitations. In this paper, we introduce the concept of "dual characteristics" to describe the particularity of the state-holding enterprises, in order to study the influencing factors and the role of transnational investment behavior of state-holding enterprises from a more comprehensive perspective.on the basis of previous studies, first of all this dissertation reviews the related theory and literature, and induces systematically the development situation and characteristic of State-holding Transnational Enterprises, in the background of the economic globalization and China’s State-owned Enterprise Reform. From the view of the relationship among State-holding Transnational Enterprises and the surrounding environment and the inner main body, the definition of Enterprise attribute is also carried out. From a more comprehensive perspective, this dissertation studies the impact of this kind of Enterprise’s characteristic and transnational investment behavior, analyzes the mechanism and path of the impact, and forms the theoretical framework of this dissertation. Under this theoretical framework, this dissertation carries on the empirical study. On the basis of the explanation theory, this dissertation tries to reveal the performance of the regularity of the research object and carries out a deep analysis. Finally, based on the theoretical framework, this dissertation identifies the subject of interest, and the mathematical model of optimizing the transnational investment behavior of the State-holding transnational Enterprises is put forward by using the theory of equilibrium of economics.Main contributions of this paper are as follows:First, it reveals the features of the investment behavior of the state-holding transnational enterprises from the new perspective of the enterprise characteristic. Based on capital structure theory, information asymmetry theory and principal agent theory, the mathematical model of the impact path of the dual characteristics of the state-holding transnational enterprises on the behavior of transnational investment is established. The model depicts the information asymmetry of the enterprise’s attribute through alleviating the external financing, which can affect the enterprise’s financing cost, change the capital structure of the enterprise, and then influence the transmission channel of the enterprise’s transnational investment. The conclusion shows that the impact of the enterprise characteristic on cross border investment is bidirectional. On the basis of deep analysis of the characteristics, this paper introduces the policy system environment and the internal decision-making level as the two adjustment factors to examine the direction and extent of the effect. Then construct the theoretical framework of the role mechanism of the state-holding transnational enterprises’ characteristics on the transnational investment behavior.Second, the path and mechanism of the influence of transnational investment on the enterprise characteristics are empirical tested, and the corresponding policy recommendations are put forward in combination with the actual situation of Chinese state-holding enterprises. Firstly, the particularity and differences of capital structure based on different characteristics are analyzed by means of quantitative statistics and qualitative description. Consistent with the empirical results and the theoretical mechanism shows that the dual characteristics of the state-holding transnational enterprises has a significant impact on the capital structure. Then the strength of political characteristic and economic characteristic are divided by strength, and the level of capital structure are classified by different standards, in order to empirical study on the impact of transnational investment scale and efficiency of the dual-characteristics of the state-holding transnational enterprises. The empirical analysis verifies the impact of the dual characteristics of the state-holding transnational enterprises on the behavior of transnational investment, and determines the extent and direction of the impact. Finally, the empirical study on the whole mechanism of the impact determines the role and direction of adjust variables, and put forward the corresponding policy recommendations.The conclusions and suggestions of this study have a certain practical significance for deepening the China investment system reform, the reform of state-owned enterprises, and the implementation of the "The Belt and Road" development strategy.