Research On The Impact Of ESG Evaluation On Corporate Foreign Direct Investmen

With the in-depth implementation of the opening up strategy and the "the Belt and Road" initiative,Chinese enterprises have ushered in significant historical opportunities in actively globalization strategy and increasing foreign direct investment.Since 2013,China’s OFDI traffic scale has always maintained the top three in the world,and its position as a major foreign investment country has continued to consolidate.Chinese enterprises have actively integrated into the wave of globalization.However,it is undeniable that influenced by various factors,Chinese enterprises’ "going global" strategy faces many uncertain challenges.With the continuous improvement of international organizations and major countries’attention to non-financial indicators of transnational enterprises,enterprises are facing increasingly frequent social responsibility crises in cross-border investment,forming important hidden barriers that hinder the internationalization of Chinese enterprises.Therefore,improving the performance of Chinese multinational enterprises in various aspects such as environment,society,corporate governance,and strengthening their comprehensive competitiveness has important practical significance for promoting Chinese enterprises to better globalize.Based on this,this article first combs the research status of ESG rating,ESG investment,and foreign direct investment of Chinese enterprises,and then discusses the relationship between ESG rating and OFDI with relevant theories.Starting from the basic theory of foreign direct investment,combined with the theory of corporate social responsibility,it explores the micro factors that affect foreign direct investment at the corporate level;Propose that the ESG performance of enterprises can promote foreign direct investment by alleviating financing constraints and enhancing their competitive advantages;Finally,taking A-share listed companies from 2010 to 2019 as a research sample,Bloomberg data was selected to measure the ESG rating level,and the annual total amount of external investment events of enterprises was used to measure the scale of OFDI.An empirical test was conducted using a fixed effect model.The research results show that:(1)Good ESG performance of enterprises can enhance the scale of foreign direct investment by improving their total factor productivity and alleviating financing constraints;(2)The promotion effect of good ESG performance on the scale of foreign direct investment by enterprises is more significant in developed countries;(3)Large enterprises’ ESG performance has a significantly higher effect on promoting the scale of foreign direct investment than small and medium-sized enterprises.Based on the research conclusions,this article proposes targeted policy recommendations from multiple levels,including enterprises,government,and society.The innovation points of this article mainly include:(1)Systematic research on the impact of ESG performance on China’s enterprises’ outward direct investment,summarizing the relevant factors affecting the scale of enterprises’outward direct investment from a new perspective,analyzing the mechanism of each factor,and constructing a panel data econometric model for empirical research;(2)This paper explores the specific impact of enterprise ESG performance on OFDI in the context of differentiated enterprise size and host country development levels.