FDI Impact Of Chinese Enterprise Financial Performance

Since three decades after the Chinese reform and opening up, the foreign direct investment inflows has had a significant impact to Chinese economic development.China’s cheap labor resources play an important role in the introduction of foreign direct investment process. Many studies have also pointed out that changes in technology and management experience, more often than not from their own R & D, but the foreign technology transfer, diffusion of the results of management experience. Thus the introduction of foreign investment for the country, the proliferation of technology and management among enterprises play an important role.For investors understand a company’s financial performance is to invest in an important part of the ring, through which you can directly understand the status of the operation and management of enterprises; for managers to understand a company’s financial performance as it can solve business management issues important reference index. Thus, as at the time of DuPont analysis said, the financial performance is part of the financial management can not be ignored. With the introduction of foreign capital, advanced technology and management experience in all aspects of the enterprise also has a profound impact, these effects will not affect the company’s financial performance has become a subject worthy of study..In this paper, based on the point of integration of financial management topics and foreign direct investment, do empirical analysis of foreign direct investment(FDI) to China for corporate financial performance. Select can reflect the financial performance of the representative financial indicators as explanatory variables separately from corporate solvency, operating capacity, profitability and ability to grow in four areas, Select the appropriate factors as explanatory variables.Use STATA software for statistical analysis and regression analysis, and the results is that FDI has a positive impact on corporate financial performance,and gives recommendations for reserch results.