A Study On The Impact Of SOE Restructuring On Chinese OFDI Enterprises' Business Performance

Since 1993,China's State-owned enterprises(SOEs)have been restructured successively to achieve system innovation.In the process,they have gradually accelerated the pace of OFDI,with its scale increasingly expanding.However,it is still to be answered "whether" or "how" the restructuring of SOEs has a positive impact on OFDI's business performance.This paper attempts to answer this question in order to better guide restructured enterprises to conduct OFDI rationally.Firstly,based on the literature review,this paper describes the typical facts about the impact of state-owned enterprise restructuring on the business performance of OFDI enterprises in China.From the perspective of average treatment effect,the results show that the average business performance of Reformed enterprises which engage in OFDI is higher than that of non-reformed enterprises which engage in OFDI,and the reform of state-owned enterprises plays a promoting role in greatly improving the business performance of OFDI enterprises;there are obvious differences in the business performance of enterprises with different investment motivations,entry modes,technology intensities and host country income levels.That is to say,resource-seeking restructured enterprises have the strongest business performance capacities;and the average operational performance of restructured green field acquiring enterprises is better than that of transnational acquiring enterprises.Restructured enterprises with high technology intensity tend to deliver better business performance;and restructured enterprises with investment in economically developed countries have the highest level of business performance.Secondly,the sample data of enterprises from 2004 to 2013 are obtained from the matching data of "China Industrial Enterprise Database" and "Overseas Investment Enterprises(Institutions)Directory",this paper adopts the PSM-DID method for empirical test.The results show that,from the perspective of current business performance,OFDI restructured enterprises obtained a higher net profit margin than OFDI non-restructured enterprises.In other words,the state-owned enterprise restructuring can significantly improve the business performance of restructured enterprises.From the perspective of long-term business performance,at the later stage of investment,the influence of the restructuring of SOEs on the business performance of the restructured enterprises is significant and its influence coefficient is the largest,meaning that the long-term business performance of OFDI enterprises after the restructuring of SOEs is steadily rising.Group test results show that lower technology intensity,choosing cross-border mergers and acquisitions,resource-seeking and investing in economically developed countries have significant impact on the business performance of restructured enterprises.Thirdly,based on Sobel mediation factor test method,this paper tests the speci fic channels of the impact of SOEs restructuring on the business performance of China's OFDI enterprises,and the study finds that the agency cost and short-term debt paying ability are intermediary factors.When intermediary factors are included,it shows that the agency cost and short-term debt paying ability play an intermediary role in the relationship of SOEs restructuring and OFDI enterprise business performance.SOEs restructuring improves the level of enterprise business performance by inhibiting agent cost and improving short-term solvencyFinally,this chapter summarizes the main conclusions of the research in this paper,takes the empirical results as the basis,takes the improvement of the operating performance level of OFDI restructured enterprises as the starting point,and puts forward reasonable Suggestions for OFDI restructured enterprises from the perspective of government and enterprise.