Research On The Relationship Between The Degree Of Internationalization And The Performance Of Manufacturing Enterprises

Since the reform and opening-up,Chinese manufacturing enterprises have been "going global" with remarkable results,and the products made in China have spread all over the world.More and more manufacturing enterprises are actively practicing the "going global" strategy,accelerating the layout of the international market and actively participating in international competition.However,the degree of internationalization of Chinese manufacturing enterprises is low and they are still in the middle and low end of the global value chain,still facing the crisis of "low-end lock-in".The problem of "big but not strong" in manufacturing industry is still prominent.The internationalization of enterprises seems to be in full swing,but the actual development is not satisfactory.At present,the shrinking global demand market has accelerated the global economic recession,leading to difficulties in capital turnover and obstruction of financing channels for manufacturing enterprises,and unreasonable capital structure has led to frequent debt problems,which not only affects the normal operation and development of enterprises,but also affects the stable,healthy and sustainable development of the Chinese economy.Therefore,whether internationalization is profitable for Chinese enterprises,especially for manufacturing enterprises,has become a focus of attention;how internationalization affects enterprise performance through capital structure has become an important issue for manufacturing enterprises to consider when they go global.Based on the above background,this paper firstly collates the relevant literature on internationalization,capital structure and firm performance,clarifies the two relationships between internationalization,capital structure and firm performance,and analyses the mediating effect of capital structure.Secondly,we analyze the current situation of the scale of China’s manufacturing industry and the internationalization degree and performance of China’s manufacturing enterprises.Thirdly,the four basic hypotheses of this paper are formulated by applying the theory of enterprise internationalization and the theory of capital structure in conjunction with the literature review and the analysis of the current situation.Fourthly,a regression model is constructed based on the previous hypotheses to determine the measures of the degree of internationalization,capital structure and firm performance,and to construct panel data of Chinese manufacturing listed enterprises from 2017 to 2020.The two-by-two relationship between the degree of internationalization,capital structure and firm performance is quantitatively analysed,and then the mediation effect of capital structure is quantitatively analyzed using capital structure as the mediating variable.The results of the empirical tests show that: Chinese manufacturing firms are currently in the early stage of internationalization,and the degree of internationalization shows a negative relationship with firm performance;the degree of internationalization shows a positive relationship with capital structure;capital structure shows a negative relationship with firm performance;and capital structure plays a partial mediating effect in the relationship between the degree of internationalization and firm performance.Finally,according to the conclusions of the previous article,relevant policy recommendations are put forward in order to provide theoretical basis for the international development of Chinese manufacturing enterprises and the rational optimization of enterprise capital structure.