The Effect Of Institutional Environment On Establishment Mode Choice Of Chinese Outward Foreign Direct Investment

Since 2013,the Chinese government initiated “The Belt The Road”,The pace of Chinese enterprises overseas investment cooperation is growing rapidly.During the period from January to November 2016,a total of 7555 overseas enterprises in 164 regions and countries were directly financed by non-financial direct investment.The accumulated investment reached RMB106.96 billion yuan(up 55.3% year on year,or US $ 161.7 billion),Of which greenfield and M & A investment up to 578.67 billion,accounting for 54.1% of total foreign investment.However,Chinese enterprises need to be vigilant when exploring overseas markets,and choose carefully M & A and new construction.Because these two models(compared to the franchise,export),although the temptation to lucrative profits,but also represents the need to take a greater risk.Correspondingly,the academic community is also actively studying the choice of overseas investment establishment model of Chinese enterprises.However,most of the literatures from the perspective of transaction cost theory,research conclusions there are many controversial.In order to solve the dispute,in recent years,some scholars have introduced institutional theory to explain decision-making of entry mode on overseas market.Institutional theory focuses on the interaction between the enterprise and the institutional environment.Due to the contradictory of the previous conclusions,based on the institutional theory,this paper adopts the method of meta-analysis to summarize the previous literature,so as to get a comprehensive conclusion to support the choice of establishment mode for Chinese enterprises.Institutional theory focuses on the interaction between enterprises and institutional environment.This paper selects the three most controversial institutional environmental factors,namely,the quality of national governance,cultural distance and international experience.In particular,these three factors can be used to measure the institutional environment of the mandatory mechanism,normative mechanism and imitation mechanism.a total of 50 papers are taken into the meta-analysis,whichcontains 18776 samples.The ideal meta-analysis is that the sample capacity is above70 and the number of sample is above 30,and the result will be reliable.The sample size?mean?standard deviation?t statistic?F-value were extracted,the Fisher's r-Z conversion formula yields the effect size,converts the standard deviation into the standard error,and yields 95% confidence interval.This paper draws a conclusion through z-test that international experience and national governance quality have a positive effect on the overseas market establishment model.cultural distance has a significant negative effect on the establishment mode.At the same time,the four factors: industry,firm character,firm size and geographic distribution,are taken as adjustment variables through Q statistic.