A Study On The Choice Of Chinese Enterprises' Entering Foreign Direct Investment

The system of China’s outward foreign direct investment constitutes by two important aspects, "introduction" and "going out". During the period of 30 years in reforming and opening up, China has accumulated rich practical experience in the introduction of foreign capital, and also has developed many theoretical achievements of foreign investment in the aspect of theory. The speed of the introduction of foreign capital has being in a stable phase, China’s capital output will become the mainstream of the foreign direct investment, and Chinese enterprises will face a major issue that is the selection of foreign direct investment mode. The purpose of this study lies in providing a reasonable way of thinking and analysis framework in the choice of model when Chinese enterprises implement foreign direct investment, enriching the theory of foreign direct investment chose mode for Chinese enterprises, and helping enterprises to make the right choice in the face of the investment mode selection.Based on the theoretical research and the present status analysis in Chinese enterprises foreign direct investment, raising the influencing factors hypothesis in the Chinese enterprise foreign direct investment choosing mode, collecting relevant information and data between 2009 and 2013 for 45 overseas subsidiaries of Chinese enterprises which took Greenfield investment or cross-border M&A, applying SPSS19.0 software for data statistics, and testing the degree of the effect of influence factors to foreign direct investment choosing mode by Logistic regression analysis. Empirical analysis results show that the larger enterprise prefers Greenfield investment entering mode; The greater the cultural differences of home country and host country, the enterprise tends to choose the Greenfield investment mode; The host country has high economic level, enterprises suitable for the cross-border M&A entering mode; the growth rate of enterprise and R&D spending has less effective influence on the selection of enterprise entry mode. Finally, this article provides some countermeasures and suggestions for Chinese companies when making foreign direct entry mode choice.