A Comparison Of Overseas Investment Models By Chinese Enterprises

As the growing openness of the China economy, more and more Chinese enterprises are showing an increasing eagerness in oversea investment to broad the international markets. On the other hand, overseas investment of Chinese enterprises is still in its infancy, companies are facing the situation of decision among a variety of issues. The worldwide financial crisis happened in 2008 highly revealed the drastic changes in the international economic environment. Thereby, in which way to join the international market becomes the err on the side of caution of Chinese enterprises, also the key to success for enterprises oversea investment. The purpose and significance of this paper is to give an in-depth understanding of actual state and future trend of Chinese enterprise overseas investment under the strategy of"Going out", to understand the decisive and influential factors on a mode selection of enterprise overseas investment; It is of great practical significance to the development of our Chinese enterprises; also, it makes a cross-reference and suggestion to the overseas investment of our Chinese enterprises.The two most common modes of foreign investment internationally are greenfiled investment and cross-border M&A, Chinese enterprises also have their own characteristics.This paper generalizes and analyzes the actual state and future trend of mode selection upon foreign investment of Chinese enterprises based on the review of mode selection of foreign investment research and result that made by domestic and overseas scholars; it stresses to analyze the influential factors on elected way for Chinese enterprise participating to the international market, and utilizes the binary logistic regression model to practically verify part of the influential factors. This paper draws a conclusion that the most influential factor for Chinese enterprise to choose between green field investment and cross-border M&A is the level of the host economy; those none-conspicuous factors are research and development spending and the culture difference of the enterprises.