Research On The Business Performance Of Chinese Enterprises' Outward Foreign Direct Investment

Since the reform and opening up in 1978,Chinese enterprises have made considerable progress in outward foreign direct investment.In 2000,the Party Central Committee formally proposed the "going out" strategy and at the same time raised this strategy to the height of "a major strategic move that affects China's overall development and future." The implementation of this measure has encouraged enterprises to expand the scope and scale of overseas competition and cooperation.Enterprises have accelerated the development of international markets and further promoted the development of foreign investment.In 2013,President Xi Jinping proposed the “ One Belt,One Road ” strategy.For Chinese enterprises,the introduction of this strategy means the arrival of a new opportunity.Enterprises should be faster and better under the guidance of the “Belt and Road” strategy.go out.However,due to the differences in international politics and economic environment and the dynamic complexity of international market factors,the risks of international business operations are very high,and many companies have not achieved the expected returns in this process.Then,can foreign direct investment of Chinese enterprises bring benefits to enterprises and improve their business performance? The answer to this question is also the key of this article's discussion and research.Firstly,this paper introduces the research background,significance,research content and innovation points,Then using visual charts to analyze and discuss the nature of the foreign direct investment of Chinese listed companies,the host country of investment and the distribution of industries.Finally,based on the data of listed companies with foreign direct investment from 2013 to 2017,using the Propensity Score Matching(PSM)method to find the most suitable matching object for the listed companies with foreign direct investment,and then using the Difference-in-Differences(DID)method regression to obtain the difference in business performance between the two groups of samples,examine the causal relationship between foreign direct investment and business performance,and test therobustness from five aspects: lag,host country(area),enterprise nature,Investment industry and investment model.Through empirical research,the paper draws the following conclusions: First,in general,foreign direct investment will improve the business performance of enterprises,and it has a lag;second,when investing in a high-income country,its performance is higher compared with investing in low-income and Hong Kong,Macao and Taiwan regions.Third,private enterprises and state-owned enterprises can significantly improve their business performance through direct foreign investment,but the performance of private enterprises brought by foreign direct investment is higher compared with state-owned enterprises.Fourth,from the perspective of the investment industry,the business performance of the enterprise investment manufacturing industry is higher than that of other industries.Fifth,the investment model is that the performance improvement of listed companies with cross-border mergers and acquisitions is higher than that of investment companies with green investment.