| "The Belt and Road" initiative in China is a major strategic deployment to deal with the complex international economic and political situation by stimulating domestic growth vigor,expanding open space and seeking diplomatic breakthrough."The Belt and Road" initiative promote can also well solve the problem of China's domestic overcapacity as well as lack of resources,and can provide a new path for the development of the internationalization of transnational enterprises in China.However,the existence of opportunities also means huge risks and challenges.The countries along "The Belt and Road” is less developed countries,and also facing problems such as domestic unrest,religious conflicts,frequent change of political instability,corruption,deterioration of income distribution,high unemployment,boundary and territorial disputes and regional conflicts.Inferior,it means a great risk of "The Belt and Road" initiative for promoting.Therefore,for Chinese enterprises,when making foreign direct investment decision to these countries along "The Belt and Road" areas,how to weigh the pros and cons,for location choice is particularly important.At present,the influence of internal and external macro factors(such as the host country's system and home country's policy)on location choice of OFDI has been studied widely.However,the literature on influencing factors of OFDI location choice is relatively scarce from the micro financial perspective.At the same time,academic research has studied the impact of corporate financing capabilities on OFDI decisions,but the description of OFDI decisions only focuses on whether or not to invest,and does not involve the impact of financing capabilities on location choice of OFDI.Therefore,based on the empirical data of Listed Companies of Chinese foreign direct investment on "The Belt and Road" along countries from 2010 to 2015,this paper fill the gay by studying the correlation between the financing capacity of enterprises and the "The Belt and Road” along the country's location choice of OFDI,and also test the moderating role of institutional distance between home country and host country.This paper combines literature research with empirical research.First of all,summarize the enterprise location choice of foreign direct investment related research,studies influencing factors of financing capability associated with foreign direct investment decision-making,risk control and foreign direct investment location selection,and find the gap in these researches on which this paper focus.Secondly,based on the theory of financing constraints,the location choice of foreign direct investment theory,this paper propose hypothesis to study enterprises' financing ability with the present risk level of countries along "The Belt and Road".Then through the model design,the selection of sample and variable index,the paper used the multivariate linear regression analysis of OLS to demonstrate correlation between different dimensions of corporate financing ability of the enterprise and the OFDI location selection on countries along "The Belt and Road",as well as the regulatory effect of institutional distance on the relationship above.Robust test are also performed.Finally,based on the empirical results of this paper,conclusions are drawn and the relevant policy suggestions are put forward.The results of this study showed:1.Internal financing ability and commercial credit financing ability have significantly negative correlation with “The Belt and Road” OFDI host countries' income level.It indicates that when,enterprise's financing ability is stronger,they are more likely chose to invest low income countries along "The Belt and Road”;2.External financing capacity of companies,namely bank loans,has no significant correlation with the choice of “The Belt and Road” OFDI location;3.The institutional distance has an inhibition on the correlation of internal financing ability and commercial credit financing ability with "The Belt and Road" OFDI host countries' income level,which means the greater distance is,the correlation is much more insignificant.This study explores the relationship between enterprise financing capacity and OFDI decision-making from the perspective of location selection,and fills the gaps in the existing literature.It enriches the literature related to foreign direct investment related literature,as well as financing capacity and OFDI decision-making related literature.Secondly,this study ground upon the "Belt and Road Initiative" background and uses the data about enterprises OFDI in "The Belt and Road" countries from 2010 to 2015,The conclusions have high practical value,and are conducive to advancing the "Belt and Road Initiative" initiative. |
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