Analysis Of The Impact Of Guarantee Network On Enterprises'Foreign Direct Investment

At present,China is the second largest outward foreign direct investment country in the world.Although it is in the forefront of the overall scale,enterprises face great difficulties in foreign direct investment,especially small and medium-sized enterprises and private enterprises have severe financial constraints.This paper sorts out the current situation of foreign direct investment of Chinese enterprises from the aspects of investment scale,characteristics of investment entities,industries involved in investment,and location characteristics of investment enterprises,and analyzes the trends and problems in China's foreign direct investment.The guarantee system is a system that is used to alleviate the shortage of funds in the operation of the enterprise.It will alleviate the financial difficulties of the enterprise in the investment to a certain extent and solve the financing problems existing in the OFDI.Therefore,this paper takes the listed company as a sample to study the impact of the guarantee network on the enterprise OFDI.As an important participant of OFDI activity and a company with strong strength,the listed company is less affected by the guarantee system and the guarantee network than the ordinary company,so the result is more convincing.Firstly,this paper sorts out the research literature on the guarantee network,analyzes the economic significance of the guarantee,and explains the reasons for the formation of the guarantee network and the economic risks brought by the domestic scholars' research on the guarantee network.This paper sorts out the basic theories related to the guarantee network,including the information asymmetry theory that expresses the positive role of the guarantee network,the contagion effect of the negative effects of the guarantee network and the short-selling hypothesis of the major shareholders.In addition,this paper analyzes the factors that influence the foreign direct investment of enterprises from the aspects of corporate investment motivation,corporate financing ability and productivity,host country and home country system.The existing research does not determine the impact of the guarantee network on the foreign direct investment of enterprises,but analyzes the impact of the guarantee network on the performance of enterprises and other financial conditions.Based on the theoretical hypothesis,this paper carries out the model design,and chooses Heckman two-stage selection model to avoid the selection bias,so as to analyze the influencing factors from the two aspects of foreign direct investment decision and foreign direct investment scale.The relevant financial indicators and basic information of the basic enterprise shall be subject to the announcement of the Wind database,and the listed company's foreign direct investment data shall be obtained by manually consulting the company's annual report.The Ucinet software analyzes the guarantee network of listed companies from 2006 to 2016,and obtains the dependent variable of the model.The guarantee network and the guarantee are used as the dependent variables to analyze the different impacts of the two on the foreign direct investment of the enterprise.And through the group form to study the degree of difference between the different ownership enterprises and the eastern and western enterprises.It is found that pure guarantee behavior will increase the probability of foreign direct investment,and it will also significantly improve the scale of investment.Different from this,joining the guarantee network can not only promote the foreign direct investment of enterprises,but also inhibit the foreign direct investment decision of enterprises.The results of the grouping show that the state-owned enterprises are less affected by the guarantee behavior than the non-state-owned enterprises.This shows that the standardized guarantee system brings more investment promotion to non-state-owned enterprises.The negative impact of participating in the guarantee network is also that non-state-owned enterprises are larger than state-owned enterprises.State-owned enterprises have poor stability and are more vulnerable to the crisis.The positive impact of the guarantee behavior of the eastern enterprises is greater than that of the central and western enterprises.The negative effects of the guarantee network on enterprises in different regions are not significantly different.Further research has found that the level of financial development in the region will have a significant positive impact on the foreign direct investment decision-making and the amount of foreign direct investment.The scale and productivity of the enterprise will also have a positive effect on the foreign direct investment of enterprises.Finally,based on the research results,this paper puts forward corresponding policy recommendations from three levels:enterprise,bank and government.It hopes that the corresponding policies can better exert the advantages of the guarantee system and alleviate the financing problems faced by enterprises in production and operation,especially investment.At the same time,it also avoids the risks caused by poor quality guarantee network problems.This paper also proposes the direction of further research,which can better improve the theoretical framework between guarantee network and enterprise foreign direct investment,and ultimately help enterprises to better achieve "going out" and better achieve internationalization.The innovations of this paper are as follows:First,the existing literature on the study of foreign direct investment of enterprises is limited to whether or not to invest,that is,whether to indicate foreign direct investment by 1 or 0.This paper obtains the specific amount by looking up the annual report of the listed company.Second,whether an enterprise conducts direct foreign investment is not random,but a rational decision that is influenced by various factors.Therefore,ordinary multiple regression will select in advance on the data,thus generating selective bias.Therefore,this paper chooses Heckman two-stage selection model to avoid selection bias.