The Relationship Between Chinese Enterprises’ Overseas Investment And The Financial Risks

Post financial crisis era, Global foreign investment flows have a sharp decline, But China’s overseas investment situation is having a thriving. China has great potential for overseas investment, it is a good opportunity for Chinese companies to go to the world. However, As China’s firm rapidly growing, there is a big risks behind the big opportunities. Sichuan changhong electric was cheated in the United States and China Railway Construction was failed in Saudi Arabia which showing it is very important to control the risks when a company has overseas investment.In China, the overseas investment Theory is not very mature, Therefore, This article is based on the consideration,and studies the relationship between Chinese overseas-invested enterprises and the financial riskThis article, introduces the overseas investment theory and the basic concept of financial risk at first, then studies the relationship between Chinese overseas-invested enterprises and the financial risk.This paper is divided into five parts:the first part is Introduction, describing the study background and purpose and significance; the second part is overseas Investment theory, the third part, defining the financial risks of overseas investment companies Introducing developed countries foreign investment theory, developing countries foreign investment theory and the current foreign investment theory:the forth part is empirical study, and proposing hypothesis, designing variables, selected data and decrypting descriptive statistics; the last part Conclusions and recommendations.Through this article, we can get the following conclusions:overseas Investment was correlated with financial risk; After having financial crisis, China’s overseas investment enterprises a lower financial risks than before.