The Impact Of Financing Constraints On Chinese Enterprises’ OFDI

The Belt and Road Initiative has expanded the path of internationalization for Chinese enterprises,and China’s outbound direct investment flow ranked second in the world in 2021.However,most OFDI enterprises are faced with the phenomenon of limited financing.The main reason is that Chinese commercial banks have high financing costs,and when the cost of capital is high,enterprises will reduce their OFDI activities.Meanwhile,relevant scholars also study financing constraints as an important factor affecting OFDI behavior of enterprises.Based on this,this paper further studies how financing constraints affect OFDI behavior of enterprises.What is the theoretical mechanism and path;Among the heterogeneity factors,what are the effects of enterprise ownership,enterprise productivity,enterprise region and enterprise scale?In order to solve the above problems,firstly,based on the theory of pecking order financing and the theory of firm heterogeneous trade,the paper discusses how financing constraints affect the OFDI of firms.Secondly,Probit and Logit models are used to confirm the theoretical hypothesis proposed in this paper,and the data of China’s listed A-share enterprises from 2011 to 2021 are used.The results show that: first,financing constraints will affect the behavior of OFDI of enterprises,and have a significant inhibitory effect on OFDI of enterprises;Second,high productivity can weaken the negative effect brought by financing constraints,and has a positive effect on enterprises’ OFDI,that is,high productivity can promote enterprises’ outbound investment activities.It is also found that R&D investment has a significant positive moderating effect between financing constraints and OFDI behavior of enterprises.Thirdly,the sub-sample regression of enterprises found that the ownership structure of enterprises,the region where enterprises are located and the scale of enterprises make the degree of financing constraints between enterprises different.Among them,state-owned enterprises face lower financing constraints than non-state-owned enterprises;The eastern region faces lower financing constraints than the central and western regions.Large enterprises face lower financing constraints than small enterprises.Finally,according to the conclusion of theoretical and empirical research,this paper gives some relevant countermeasures and suggestions.On the way to ease the financing constraints of enterprises,relevant governments,financial institutions and enterprises need to make joint efforts to realize the sustainable development of OFDI of Chinese enterprises.