Analysis On The Performance And Influencing Factors Of China's OFDI Enterprises

Total outward foreign direct investment from China reached 183 billion dollars in 2016,which means China has been the world's second largest investor for the first time in history.As of December 2016,24,400 Chinese enterprises had conducted outward direct foreign investment.The accumulated net outward foreign direct investment(inventory)of China reached $135.79 billion,ranking sixth in the world.Under the background of the rapid development of outward foreign direct investment,this article establishes an evaluation system for the performance of outward foreign direct investment enterprises,and studies the changes in the performance of China's outward foreign direct investment enterprises,and analyzes whether outward foreign direct investment has an impact on the performance of enterprises.Finally,empirically examine the factors affecting the performance of foreign direct investment enterprises.This article first summarizes the current status and characteristics of China's enterprises' outward direct investment.China's outward foreign direct investment has gradually increased the scale of investment.The investment industry has a wide distribution range.The investment area is more concentrated.State-owned enterprises are still the main investment specialty.After that,we selected listed companies that conduct outward direct foreign investment as research samples to establish a performance evaluation system that includes profitability,asset efficiency,debt repayment ability and development ability.Study period includes previous year,during the year and three years after the investment.The results showed that the performance of OFDI companies performed well in the year of investment.The performance reduces firstly in the first,but then improves.The outward foreign direct investment enterprises needed adjustments in the short term,but long-term value can be achieved.Operating performance of outward foreign direct investment companies with different industries and different state-owned attributes will vary.Then,through propensity score matching and comparative analysis,this paper studies whether outward foreign investment will affect the business performance of the company.The study found that outward foreign direct investment can effectively improve the company's ROE and sales net interest rate,but the overall performance of outward foreign direct investment enterprises is less than enterprises that have not invested in foreign countries.Outward foreign direct investment can promote the company's operating capacity and growth capability,but it has a negative effect on solvency and profitability.Finally,through the panel data and the random effects regression model,this paper empirically tests the factors affecting the performance of OFDI firms.The empirical results show that the company's ownership concentration,state-owned attributes,mortgage value and the proportion of technicians all have a significant positive impact on the performance of OFDI companies.OFDI companies with high ownership concentration have good business performance,and state-owned OFDI companies have policy advantages.Corporate operating performance has a positive impact,and OFDI companies with higher mortgage values have better business performance.The economic development level,country risk and cultural distance of the host country have no significant effect on the performance of OFDI companies.