Research On The Influence Of Parent Company Productivity On The Survival Of Overseas Subsidiaries

The pace of China’s foreign direct investment has been accelerating day by day.The total OFDI has been ranked among the world’s top three for ten consecutive years,and its stock has been ranked among the world’s top three for five consecutive years.China has made outstanding achievements in the volume of "going out".However,the survival condition of enterprises after "going out" is not ideal.The survival rate of overseas subsidiaries of China enterprises is less than 30% for more than one year.The survival of overseas subsidiaries will be affected by many factors,including macrolevel factors of home country and host country,micro-level factors of parent company and overseas subsidiaries themselves.Starting from three perspectives of parent company productivity,institutional distance and internationalization speed,this paper builds a theoretical model among parent company productivity,survival rate of overseas subsidiaries,institutional distance and internationalization speed based on resource-based theory,internalization theory,heterogeneous enterprise trade theory,institutional basic theory and time compression diseconomy theory,and analyzes the influencing factors of overseas subsidiaries’ survival from a theoretical perspective.Further,by collecting the data samples of overseas subsidiaries of A-share listed companies in China from 2011 to 2020,and using COX proportional risk model to empirically test the theoretical model,the following four conclusions are drawn: First,the productivity of parent company positively affects the survival of overseas subsidiaries;Second,the informal institutional distance weakens the relationship between the parent company’s productivity and the survival rate of overseas subsidiaries;Third,the speed of internationalization weakens the relationship between the productivity of the parent company and the survival rate of the overseas subsidiaries.Based on the theoretical and empirical research results,this paper puts forward the following suggestions: First,to encourage enterprises to increase research and development investment;Second,optimize the efficiency of market resource allocation;Thirdly,removing redundant procedures and optimizing management efficiency;Fourthly,strive to understand and adapt to the cultural environment of the host country,respect the cultural beliefs and values of the host country,etc.Fifthly,according to our own situation,we should choose an appropriate speed of internationalization expansion.