A Study On The Impact Of Ownership Concentration On Internationalization Degree Of Chinese Enterprises

Under the background that the Chinese government proposes and promotes the Going Global strategy and The Belt and Road initiative,the competitiveness of Chinese enterprises is continuously improving,and more and more enterprises are going abroad to carry out international operations.Due to the special historical background,the ownership structure of Chinese enterprises has the characteristic of high ownership concentration.As the foundation of corporate governance,equity structure plays an important role in the internationalization of enterprises.Based on the data of listed manufacturing companies with overseas sales revenue in Shenzhen and Shanghai from 2013 to 2017,this paper discusses the influence of ownership concentration on the degree of internationalization of Chinese enterprises in combination with the characteristics of ownership structure of Chinese enterprises and the particularity of enterprise internationalization.This is of great significance for Chinese enterprises to adjust their ownership structure and improve their internal governance environment in a timely and reasonable manner in their international operations and management.Firstly,based on summarizing the theory of separation of two powers,principal-agent theory and information asymmetry theory,this paper analyzes the influence path of ownership concentration on the degree of internationalization.According to the data of listed companies,this paper summarizes the current situation and characteristics of Chinese enterprises' international operation and ownership structure.On the basis of the existing research,this paper selects 678 listed manufacturing companies as research samples,uses ownership concentration as explanatory variables,uses internationalization degree of listed companies as explanatory variables,and selects enterprise age,enterprise scale,asset-liability ratio,marketing intensity and research and development intensity as control variables,to establish relevant models to analyze the relationship between ownership concentration degree and internationalization degree of listed manufacturing companies in China.The sample enterprises are divided into state-owned and private enterprises,enterprises in the eastern region and enterprises in the central and western regions for discussion.The empirical results show that the ownership concentration has a significant positive correlation with the degree of internationalization.The significance of private enterprises is stronger than that of state-owned enterprises,and that of enterprises in the eastern region is stronger than that of enterprises in the central and western regions.Therefore,it is of great significance to seek reasonable internal governance measures to prevent the dispersion of shares from affecting the internationalization of Chinese enterprises and to speed up their integration into the world economy at a time when the ownership structure of Chinese enterprises is constantly being adjusted.This paper puts forward countermeasures and suggestions for the adjustment and improvement of the ownership structure of Chinese enterprises and the improvement of the internal environment.under the current situation of China's economic transformation and the overall low level of internationalization of Chinese enterprises,Chinese enterprises need to maintain a certain degree of ownership concentration to solve the principal-agent problem,so that shareholders can effectively supervise and manage the internationalization of enterprises,thus improving the internationalization level of enterprises.With the continuous advancement of equity reform,the trend of equity decentralization is increasing.In order to avoid the impact of equity reform on the international operation of enterprises,enterprises should optimize their internal governance environment.Enterprises need to establish and perfect the internal supervision and management system as soon as possible,implement the management equity incentive system and increase investment in research and development costs.The degree of ownership concentration of private enterprises has a stronger influence on the degree of internationalization than that of state-owned enterprises.This is because state-owned enterprises are greatly influenced by the government.With the continuous development of China's economy,state-owned enterprises should gradually carry out ownership reform,attract high-quality social capital and actively move towards overseas markets.