A Study On The Impact Of Responding To The Belt And Road Initiative On Corporate Financial Performance

The Belt and Road initiative has entered its ninth year,and enterprises play an irreplaceable role as the main body of building the Belt and Road.However,in the process of participating in the Belt and Road,enterprises face many potential risks and challenges such as politics and culture,and it’s difficult to operation internationally.This paper focuses on whether enterprises aiming at profits maximization can obtain policy support from political strategies that respond to the Belt and Road Initiative,and thus improve their financial performance.In this paper,enterprises in Straight Flush the Belt and Road concept stocks are regarded as enterprises responding to the Belt and Road Initiative.Taking 2015 as the base year of policy,enterprises in the A-share main board of Shanghai and Shenzhen stock markets are selected as the sample,and financial and ST enterprises are excluded.The sample period is set from 2011 to 2019,and the data years of the explained variables are from 2012 to 2020.The data are downloaded from WIND and CSMAR,and ROA is taken as the index to measure the financial performance of enterprises.STATA software combined with the classical difference-in-differences model is used to analyze the panel data for nine consecutive years.The study concludes that the response to the Belt and Road Initiative can significantly improve the financial performance of enterprises.Further heterogeneity analysis shows that the promotion effect of responding to the Belt and Road Initiative on the financial performance is related to the equity attributes and industries of enterprises,and the promotion effect of non-state-owned enterprises and non-key industries is better than that of state-owned enterprises and key industries.The intermediary mechanism test shows that responding to the Belt and Road Initiative can promote the growth of corporate financial performance through alleviating the degree of financing constraints and increasing R&D investment.Taking the Belt and Road Initiative as an example,this paper provides new evidence on whether and how the political strategies of Chinese enterprises can improve financial performance,which enriches the study of the microeconomic effects of the B&R Initiative and provides implications for the implementation of the Belt and Road Initiative and how Chinese enterprises can better respond to national macro policies to achieve performance growth.