Is the overseas investment of Chinese enterprises affected by institutional factors?
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The overseas investment of Chinese enterprises is indeed affected by institutional factors. The choice of entry mode for outward foreign direct investment (OFDI) is influenced by institutional differences between China and the host country, with greater institutional differences leading to a preference for cross-border mergers and acquisitions (M&A) . The impact of regulatory policies on OFDI also varies depending on the ownership structure of the enterprises, with state-owned enterprises being more significantly affected than privately owned enterprises . Institutional distance, including knowledge and economic distance, plays a role in influencing the overseas research and development (R&D) intensity of Chinese multinational enterprises . Furthermore, institutional factors, such as the institutional environment and institutional distance, affect the international market selection (IMS) of Chinese contractors in the international construction market . These findings highlight the importance of considering institutional factors when analyzing the overseas investment behavior of Chinese enterprises.
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| Papers (4) | Insight |
|---|---|
| Yes, the paper examines the effect of institutional differences between China and host countries on the choice of outward foreign direct investment (OFDI) entry mode by Chinese enterprises. | |
2 Citations | Yes, the overseas investment of Chinese enterprises is affected by institutional factors such as knowledge and economic distance, as well as the strength of intellectual property rights protection in host countries. |
| Yes, the overseas investment of Chinese tourism enterprises is affected by institutional factors, as indicated by the study's findings on the preference for regions with a sound institutional environment and the influence of bilateral political relations on location selection. | |
| The paper provides evidence that the overseas investment of Chinese enterprises is affected by institutional factors, specifically the regulatory policies on outward foreign direct investment (OFDI). |
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