The Impact Of International Capital Inflow On The Financial Risk Of China's Listed Companies

With the international economic and financial integration process to accelerate,a country's economic fluctuations will have an impact on other countries' economies,and connect the economy is a key element of international capital.The flow of international capital will not only impact on the macro-economy of the inflowing countries,but also affect the production and operation and the living conditions of the micro-enterprises.This paper attempts to study the impact of international capital inflows on the financial risk of listed companies in China,and further divides FDI into foreign direct investment,securities investment and other investment according to the nature of international capital,and analyzes whether different types of capital inflows have different effects on corporate financial status;Finally,taking into account the special nature of the credit market,due to the trust of the government,banks are more willing to lend to state-owned enterprises,rather than easily lend to non-state-owned enterprises,resulting in capital is not optimal allocation,due to differences in financing constraints,State-owned enterprises and non-state-owned enterprises,to further study the impact of international capital inflows on the financial risks of enterprises with different ownerships.The innovation of this paper is that the macro-capital fluctuation is associated with the micro-enterprises,so the literature research is still relatively small.Another innovation is that the international capital inflows use the total capital inflow rather than the net capital inflow.In the previous analysis,the main use of net capital inflows is because the research object is mostly developing countries,developing countries as the main capital inflowing countries,the scale of capital outflow is small or even negligible,So the previous study with net capital inflows can represent the behavior of foreign investors.However,with the development of China's politics,economy and culture,China's international status has increased,and the increasing scale of domestic capital outflow has been a number that can not be ignored.Therefore,this paper uses total capital inflow rather than net capital inflow as agent variable.Only consider the investment behavior of foreign investors,excluding the interference of domestic investors in investment behavior.In order to solve the above three problems,this paper uses literature research,normative analysis and empirical research methods to study.In theory,we derive the transmission mechanism of international capital inflows influencing enterprise financial risk.On the empirical analysis,we take the listed companies in our country as samples,and choose the panel data from 2004 to 2014 to carry out regression analysis using fixed effect model.Data processing and regression analysis with excel,spss,stata and other software.After the theoretical and empirical analysis,the study found that international capital inflows can improve the financial status of enterprises and reduce the financial risks of enterprises.Different types of capital inflows have different effects on corporate financial risk.Foreign direct investment and other investment inflows can be reduced Enterprise financial risk,securities investment inflow is due to greater volatility will increase the enterprise's financial risk.Foreign direct investment is the most reliable and favorable capital inflow,not only can ease the financial constraints,reduce financial risk,but also through the "middle school effect","demonstration effect","competitive effect" and advanced technology and management Experience into China's enterprises,and promote the rapid and sound development of enterprises;and other investment because of its composition is more complex,and even some basic but also mixed with other investment coat into China,so the other investment capital inflows on the impact of corporate financial risk The study needs further analysis.The research of this paper can improve the financial early-warning model.In the former financial warning model,the change of macro-economy is rarely taken into account.The research of this paper takes the change of international capital flow into account.It also provides the theoretical basis for the government's capital control.In the capital account is not fully open,different levels of capital control can be applied to different types of capital flows,and the regulation of foreign direct investment can be moderately relaxed and the capital control of securities investment,Re-examine the control of other investments.