Influence Of The Investment Risk Of Host Country On FDI Enterprises Share Proportion

International direct investment is an important way to obtain the substantial development of a country's enterprises.FDI enterprise investment mode selection is a key field of international investment theory.Based on the review of literature on the existing research results,established on the basis of the theory of transaction cost economics and property rights theory framework,we build a model empirical testing political risk and contract risk affect how FDI enterprises holding ownership arrangements made theoretical and empirical analysis based on the world bank's enterprise survey data from 2007 to 2016.The empirical result shows that,when the contractual hazard increases,foreign investors request larger shares to avoid being held up by their domestic partners,and when the political hazard increases,they hold smaller shares to circumvent the local government's grabbing hand.Moreover,the effect of the contractual hazard is channeled through enterprises' asset specificity.Due to the previous literature,developed economies enterprises as the research object,its conclusion lack of applicability and explanatory,therefore,to establish theory model about political risk and contract risk when FDI enterprises build a joint venture in emerging countries has the applicability and explanatory,and it has both theoretical and practical significance.As the example of china practice,we want further study the risk of further of two-way FDI encountered,in order to provide the reference of "introducing" and "go out".First,reviewing the existing literature of enterprises,and introducing the case of xinfei group of china-singapore joint venture,we should focus on improving the business environment through emphasizing the "introduction" aspect.The Chinese global investment tracking database that established by the American enterprise institute and the heritage foundation of the United States is used for empirical analysis.The empirical results show that,unlike most of themultinational companies,whether the host country of contract risk and political risk to our country enterprise overseas joint venture ownership share proportion arrangement seems to have no effect.At the same time,we review the failure cases of TCL and Thomson to prove that the "going out" of Chinese enterprises does not pay attention to risk aversion.At present,most of China's "going out" enterprises are mainly state-owned enterprises and wholly state-owned enterprises.Under the institutional support of the motherland,they can withstand relatively high risk.