Research On The Impact Of The Establishment Of Chinese Banks’ Overseas Institutions On The Dual Margin Of Overseas Investment By Chinese Enterprises

In recent years,China continues to intensify the implementation of the "going global" strategy,and the influence of Chinese enterprises’ OFDI is rising.However,in the process of OFDI,enterprises are faced with financing constraints,financial risks,information asymmetry and other problems,which lead to high investment costs and even investment failure.As the main financial service providers in the market,Chinese banks can theoretically cooperate with their branches at home and abroad,such as easing financing constraints,improving investment efficiency and reducing investment risks,through the integrated operation of branches at home and abroad,co-financing,and policy consultation of host countries,so as to promote enterprises to increase overseas investment.At present,many scholars’ studies on the impact of Chinese banks’ overseas distribution on OFDI mainly focus on the unitary scale analysis to determine whether it promotes the increase of OFDI scale(i.e.intensive margin).However,there are few studies on whether it affects the scope of Chinese enterprises’ OFDI(i.e.expansion margin).Accordingly,this paper argues that the overseas distribution of Chinese banks has different action mechanisms on the scale(i.e.,intensive margin)and the scope(i.e.,expansion margin)of Chinese enterprises’ OFDI.The main research contents of this paper are as follows:In terms of theoretical mechanism,this paper corresponds the motivation and obstacles of enterprises’ overseas investment with the connotation and motivation of bank internationalization,analyzes the dual marginal action mechanism of banks’ overseas institutions on enterprises’ OFDI.It is found that the overseas distribution of banks is manifested as "customer following" on the one hand,which mainly acts on the intensive margin of OFDI and solves the financing constraint problem of enterprises investing overseas.On the other hand,there is a "guide" effect in the overseas investment enterprises of banks,which mainly acts to expand the margin and solve the investment risk problem of the overseas investment enterprises.In the empirical part,by analyzing the characteristic facts of Chinese banks’ overseas investment and OFDI status of Chinese enterprises,combined with the cases of some Chinese banks supporting enterprises to "going global",the view that Chinese banks can use their own network advantages and financial products to provide relevant financial services for enterprises is put forward.Furthermore,in the empirical part of this paper,the micro data of Chinese enterprises’ overseas investment and the stock data of Chinese banks’ overseas branches are used to construct a fixed effect model,and the robustness test and heterogeneity test are carried out.The results show that the establishment of overseas branches of Chinese banks has a promotion effect on the dual margin of enterprises’ OFDI,and the promotion effect on the expansion margin is more significant.Finally,the paper puts forward some suggestions on encouraging Chinese banks to "go global" at the national level,deepening cooperation with overseas financial regulators,improving the service level of overseas institutions of Chinese banks,etc.,so as to help China’s "going global" cause achieve a win-win situation for banks and enterprises.