The Impacts Of Internationalization On The Survival Of Corporations

Survival is a prerequisite for the development and growth of an enterprise.The global economic integration has made the market competition increasingly fiercer,and the pressure for survival that companies are facing has also increased.Based on the current situation in which Chinese enterprises are not optimistic,more and more scholars are focusing on how to improve the enterprise's survival rate,prolong the company's life span,and thinking about which factors are the risk factors for business survival and which can make the company live better.With the "going out" strategy proposed,the degree of internationalization of Chinese companies has been developing rapidly,and exports and oversea direct investment have gradually broken through,reaching successive historical highs.While Chinese companies go far,we hope that they can go longer.Start from the micro-enterprises,this article explores the impact of internationalization of enterprise on enterprise survival.Examines the influence of export and oversea direct investment on the exit of enterprises.First,the micro-panel data of 10016 sample companies in 2005-2007 industrial enterprises were selected.Using the current comparatively authoritative survival analysis method,COX proportional risk models were used to study the relationship between export and oversea direct investment and business survival risks.Combining export trends and export intensity to measure export behavior,taking into account other factors such as firm size,technological innovation,and financing constraints.An empirical study was conducted on companies with full sample,different ownership,and different industries.The results show that the tendency of exports will reduce the viability of enterprises,and the increase in export density will reduce the risk of corporate failure.oversea direct investment will reduce the probability of corporate death.This effect is even more pronounced in non-state-owned enterprises and low-tech industries.For state-owned enterprises that simultaneously carry out exports and oversea direct investment,oversea direct investment through the adjustment of export intensity has significantly increased the risk of corporate failure.Full-sample,different ownership,and different industrial regressions concluded that the increase in the degree of internationalization is conducive to the survival of enterprises,and the scale of enterprises,education level of employees,and government subsidies are positive factors affecting the survival of enterprises.Technology innovation and financing constraints are negative factors for the survival of enterprises.Finally,the Probit model was used to test the robustness of COX and the same results were obtained.