An Empirical Study Of The Impact Of Host Country Political Risk On Foreign Direct Investment Performance Of China Enterprises ——Based On The Perspective Of Bargaining Power

With the rapid development of China’s economy and its growing economic strength,more and more enterprises begin to expand the international market.The Chinese government has also put forward the "go global" strategy,encouraged and supported enterprises to make overseas investment.Due to the complex and changeable environment of the host country,Chinese enterprises are faced with many risks,among which the most influential risk is political risk,causing huge losses for Chinese enterprises to invest in the host country.Therefore,this paper studies and analyzes the political risk and investment performance of Chinese multinational enterprises’ overseas investment.Based on the theory of the traditional political risk perspective,this paper analyzes the relationship of the host country political risk and the foreign direct investment performance of transnational enterprise,and introduces the perspective of bargaining power of the host country political risk with multinational enterprises adjust the effect of the relationship between foreign direct investment performance,both in terms of bargaining power of bargaining power at the national level and enterprise level bargaining power.Firstly,relevant data of OFDI events of Chinese multinational enterprises from 2004 to 2015 of Chinese a-share listed companies are collected and sorted out.Then,the hypothesis was verified by an empirical test using Stata14.0 software on 1187 overseas investment samples generated by OFDI of multinational enterprises.Finally,the relationship between variables was analyzed based on the regression results,and the following conclusions were drawn.The empirical results show that:（1）political risk in the host country has a negative impact on the OFDI performance of transnational enterprises;（2）the economic dependence of the host country on the home country can weaken the negative impact of the political risk of the host country on the OFDI performance of transnational enterprises;（3）the technology of transnational enterprises can weaken the negative influence of political risk of the host country on the performance of OFDI of transnational enterprises.Based on the results of the study,countermeasures to deal with political risk are proposed from the perspectives of country level and enterprise level:First,from the national level,the Chinese government should improve the political risk assessment system,and China should optimize the promotion of investment cooperation between the two countries,and strengthen economic ties with the host country;Second,from the perspective of enterprises,it is proposed that Chinese multinational enterprises should enhance their technological capabilities and that Chinese multinational enterprises should consider investing in the host country which depends on its mother country for economy,which provides certain enlightenment for the risk decision of foreign direct investment of multinational enterprises.