The Influences Of Investment Experience On The OFDI Behaviors Of Chinese Enterprise

In the internationalization of Chinese firms,to choose a proper investment strategy,and integrate firm's own heterogenous characteristics and the destination country's political and economic environment,has become the key for Chinese OFDI firms "go globally" successfully.According to the "2016 Statistical Bulletin of China's Outward Foreign Direct Investment",since 2003,the expansion rate of OFDI by Chinese companies has shown a leap-like and sustained growth.At the same time,between 2003 and 2011,among the 2,459 greenfield investment data obtained in this paper,263 pre-OFDIs of the same OFDI company occurred in the same destination country,accounting for 10.7%;and among the 187 Chinese companies' cross-border mergers and acquisitions(M&A),46 pre-OFDIs of the same OFDI company occurred in the same destination country,accounting for 24.6%.It is unavoidable to ask whether the early OFDI experience of Chinese companies has an impact on whether to continue investing in the pre-market in the subsequent OFDI,and the model choice of greenfield investment or cross-border M&A.Further,when companies choose cross-border M&A,does the pre-investment experience have an impact on the choice of the proportion of Chinese companies' equity?What is the mechanism of above actions?Are the above "associations " affected by the micro-characteristics of heterogeneous firms and the macro-environment of the destination country?However,by studying the existing literatures,this paper finds that based on the heterogeneous firm perspective,the research on the impact of the previous OFDI experience on the above-mentioned OFDI behaviors(location selection,model selection and share ratio of cross-border M&A)of these Chinese companies is scarce.Therefore,based on the perspective of "dynamic investment strategy",this paper explores the theoretical framework of Nocke and Yeaple(2007)and the related new research on "the New-New Trade Theory and institutional economics,and combines the empirical tests of Logit,Probit and OLS to explore the influence of the early investment experience of the OFDI firms in the process of "go globally" on the above three major follow-up OFDI behaviors of these firms,and explore what kind of special impact of the micro-characteristics such as productivity and foreign capital ratio of these firms,and the macro-political and economic environment of the target country on the above relationships?Further,this paper studys the different impacts of the investment experience from countries with different similarities,especially the"overflow effect" of other Chinese companies' investment experience with the same industry in the same detination country,and analyzes in groups from the perspective of the capacity surplus of the Chinese OFDI firm's parent company,and the development level of the country(whether OECD countries)with the problem of"investment experience-OFDI behavior".This paper finds that the pre-investment experience in a specific destination country of Chinese firms have statistically significant influence on the location selection,follow-up mode selection and proportion of cross-border M&A shares,and the micro-features such as TFP and foreign capital ratio of the firms have a heterogeneous effect on the above relationship of "investment experience—OFDI behaviors",and the macro-environment of the destination country has a different adverse adjustment effect on the above-mentioned relationship.This paper obtains multidimensional data of China's OFDI firms among 2003-2011 by matching and merging "the list of Chinese firms' OFDI","BVD(Zephyr)statistics database","industrial statistics database" and "customs trade database".To combine with relevant norms analysis and empirical research,the paper has obtained the following main conclusions:The more experienced the pre-investment in the specific host country's market,or the more investment experience of other Chinese companies in the same industry in the same destination country,the more tend to countinue to invest in the pre-market,the more Chinese OFDI companies tend to cross-border M&A and the more inclined to share equity in the cros-broder M&A;moreover,the parent company's industrial capacity surplus of Chinese OFDI company and its target country's development level have a statistically significant effect on the above correlation of "investment experience--OFDI behaviors";From the perspective of firm heterogeneity,the productivity of Chinese firm has a statistically significant effect on the "investment experience OFDI behaviors";while the foreign capital ratio,R&D intensity,capital intensity,etc.,has a different statistically significant impact on the above-mentioned relationships;from the macro environment of the target country,its political or economic environment has produced a statistically significant reverse interaction effect with the investment experience of the OFDI companies on their following OFDI behaviors;of course,the influence of Chinese OFDI firm's investment experience in the same or similar countries on the subsequent OFDI behavior choice is stronger than that in the global level,while its investment experience in non-similar countries does not have a significant impact;Or similarly,or conversely,Chinese companies' export intensity and cross-border M&A experience in specific markets have a statistically significant impact on different OFDI behaviors.The research in this paper theoretically expands the "heterogeneous trade theory"and provides more references for the internationalized OFDI behavior selection.The theoretical research and empirical research conclusions in this paper have certain reference values for the "go globally" of China's OFDI firms,how to choose appropriate OFDI behaviors based on the previous investment experience,comprehensively considerate the company's own heterogeneity factors,and the political and economic environment of the destination country,and provide a basis for the government to improve and implement a reasonable and effective "go globally"strategy.