A Comparative Study On The Effect Of Degree Of Internationalization On Enterprise Performance Between State-owned Enterprises And Private Enterprises In Chinese Manufacturing Industry

With the development of China’s economy and the implementation of the "Going out strategy",more and more enterprises are carrying out international operation.Especially the "the Belt and Road strategy" brings great opportunities to Chinese enterprises.Currently the state-owned enterprises are still the mainstay of Chinese enterprises internationalization,while the private enterprises have also made rapid development through continuous introduction of foreign technology,capital and management experience.But owe to the different ownership,China’s state-owned enterprises and private enterprises have different characteristics in international business activity,which means influences of internationalization on enterprise performance also exist differences.How to distinguish and grasp the differences to put forward reasonably international operation has become an important topic,which is beneficial to the two enterprises better participate in international division of labor and improve the ability of international operation.Based on the classification of the state-owned enterprises and private enterprises,the paper combines the methods of theoretical research and empirical analysis,and uses China’s manufacturing listed companies panel data from 2011 to 2015.From the Comparative perspective,we study on the effect of degree of internationalization on enterprise performance between state-owned enterprises and private enterprises,and scale,asset-liability ratio,age as control variables included.This paper provides a broader ideas and guidance to China’s companies,and the mainly results include the following points:(1)The international operation of China’s companies which early dominant by the state-owned enterprises is turning into a new situation where the state-owned enterprises and the private enterprises is neck and neck.For the different internal and external factors,the state-owned enterprises and the private enterprises have different advantages and disadvantages in international operation,along with different opportunities and problems,which lead to the international strategy differences.(2)The degree of internationalization will affect enterprises performance,but exists differences between state-owned enterprises and private enterprises.For the state-owned enterprises,the relationship between degree of internationalization and enterprise performance is horizontal S-shaped,which exists maximum in 16.77%and minimum in 45.74%.For the private-owned enterprises,the relationship is inverted U-shaped,which exists maximum in 45.70%.(3)Enterprise scale and asset-liability ratio have impacts on international corporate performance for the state-owned enterprises and private enterprises.Scale has a negative correlation with corporate performance.Asset-liability ratio show a significant negative correlation with corporate performance for the state-owned enterprises,while for the private enterprises,asset-liability ratio show a significant positive correlation with corporate performance.(4)Combining the empirical research results,this paper provides some suggestions from the government level and company level(technical innovation,brand building,cooperation between S&P),in order to guide better international operation of China’s enterprises.