Institutional Environment, Political Relevance And Internationalization Of Chinese Enterprises - Empirical Evidence Of Chinese Listed Companies

Since China’s reform and opening up, our country’s economy growing, the enterprise strength is also growing. With the deepening of economic globalization and China’s government to vigorously implement the "going out" strategy, more and more enterprises go abroad to do foreign direct investment, thus enterprise internationalization research has gradually become the focus of scholars. As the international investment activities is rooted in the country’s system arrangement, thus inevitably influenced by legal and economic environment, etc. Then what is rooted in the system of our country environment will inevitably be affected by the role of the government. So in this paper, we will study its effects on enterprise internationalization investment activities from the two aspects of political association and the institutional environment.In order to analyze our problem better, this article first studies the related theory of the institutional environment, the political relation and the enterprise internationalization: this means define the institutional environment, the political association and the connotation of enterprise internationalization and their dimensions. This article will enterprise internationalization degree from two dimensions to measure the variables, depth and breadth of internationalization are divided into internationalization, which represent the number of enterprises overseas subsidiaries and overseas subsidiaries distribution state number. Because most of the listed company has not been overseas investment activities, so when we build the model that is divided into two steps:we first look at the variables how to influence the enterprise whether to do foreign direct investment, the second in the internationalization of enterprises, to explore the political relation and institutional environmental impact on internationalization degree of depth and breadth and how. Therefore, based on the resource dependence theory, social capital theory and system theory as the theoretical support, through all the listed companies during 2004-2010 cross-section data as samples to build zero expansion (ZINB) negative binomial model, thus we get the following results:(1)When the institutional environment of the business area is more better, the depth and breadth of the enterprise internationalization will be deeper; on the other hand, when the system environment is worse, the enterprise would not want to do outward foreign direct investment activities (OFDI), the degree of the depth and breadth of internationalization will be more shallower.(2)Corporate political association will weaken the positive impact that the good institutional environment on the depth of international role; At the same time, the political association of enterprise will also be negative to adjust the relationship between the institutional environment and international breadth.Finally, the empirical conclusions of this study has carried on the detailed elaboration, explained the cause of these results; at the end of the article, according to the empirical results from two aspects of the government and enterprise put forward some inspiration of management practice, and also points out the limitations of this study as well as the follow-up research prospects.