| Driven by the "go global" strategy and the Belt and Road Initiative,China’s Outward Foreign Direct Investment(OFDI)is developing steadily and orderly,and an increasing number of Chinese enterprises have achieved their internationalization through Outward Foreign Direct Investment.The process of corporate internationalization often needs sufficient financial support,but most multinational enterprises are faced with serious financing constraints when they conduct OFDI activities.The existence of financing constraints makes it more difficult for enterprises to raise funds,which in turn affects the decision making of OFDI entry mode and scale of multinational enterprises.Most of the existing literatures focus on the impact of financing constraints on enterprises’ export behavior,and less on the mechanism of financing constraints on enterprises’ OFDI.In addition,few literatures study the relationship between financing constraints and OFDI decisions based on the factors affecting the market of the host country.In fact,the network of overseas Chinese businessmen is an important relationship asset for Chinese enterprises to invest in the host country.The rational use of overseas Chinese business network by multinational enterprises can reduce the transaction costs caused by political,cultural and linguistic differences and reduce the “liability of foreignness” of multinational enterprises.Therefore,this thesis focuses on the impact of financing constraints and overseas Chinese business network on outward foreign direct investment decisions.This thesis firstly summarizes the current research status of the factors affecting the OFDI decision of enterprises,and focuses on the related research on financing constraints,overseas Chinese business network and corporate foreign direct investment decision-making.Secondly,this thesis takes A-share OFDI listed companies on the Shanghai and Shenzhen stock markets as the research object,uses Logit regression model,takes the entry mode of overseas subsidiaries as the explained variable,and studies the impact of corporate financing constraints on the entry mode of overseas subsidiaries.And then this thesis uses the negative binomial regression model and takes the number of corporate outward foreign direct investment projects as the explained variable to study the impact of financing constraints on the scale of foreign direct investment.Furthermore,this thesis further explores the regulating role of overseas Chinese business network.Based on the theoretical and empirical research,the following conclusions are drawn: First,financing constraints have a negative impact on the possibility of overseas subsidiaries entering the overseas market in a wholly-owned model,that is,the stronger the financing constraints,the lower the probability of overseas subsidiaries entering the host country market in wholly-owned model is.Second,financing constraints have a negative impact on the scale of outward foreign direct investment of Chinese multinational enterprises,that is,the more severe the financial constraints faced by enterprises,the smaller the scale of foreign direct investment.Third,overseas Chinese business network has a regulating effect on the relationship between financing constraints and the decision making of overseas subsidiaries’ entry models.That is,the activeness of overseas Chinese business network can help companies weaken the impact of financing constraints on the decision of wholly-owned entry models of overseas subsidiaries.Fourth,the overseas Chinese business network has a regulating effect on the relationship between financing constraints and the scale of enterprises’ OFDI,that is,the overseas Chinese business network will weaken the impact of financing constraints on the scale of OFDI.Finally,in view of the research conclusion,this paper proposes relevant suggestions from two aspects,that is,the government should accelerate the pace of financial system reform,improve the financing environment of enterprises,eliminate discriminatory financial policies,ease the financing constraints of Chinese enterprises,and promote enterprises to "go global".At the same time,the multinational enterprises should improve the overall comprehensive competitiveness,improve their own financing capacity.They should also attach importance to the close connection with the overseas Chinese business network and make rational use of the overseas Chinese business network to help multinational enterprises better integrate into the host country’s market.This paper is different from previous studies,it combines two different perspectives,including the micro level of corporate financing constraints and the host country level of overseas Chinese business network into the study of OFDI decisions,which is of great significance to enrich and improve the existing theories. |
