The Impact Of Financing Constraints On Enterprises' Foreign Direct Investment

With the development of Chinese foreign economic activities,more and more enterprises go abroad to participate in global competition.In recent years,Chinese foreign direct investment has made remarkable achievements.In 2015,Chinese foreign direct investment flows ranked second in the world,successfully become the international investment power.It is difficult to meet the enterprise's financial needs for the lag of Chinese financial market system reform.In this context,from the enterprise point of view,the study of corporate foreign direct investment financing problems have a very important theoretical and practical significance.In the theoretical analysis part,by expanding the firm heterogeneity model of Melitz,the paper divides the enterprise's capital source into the internal financing and external financing.When considering the external financing cost,it also does not neglect the opportunity cost of the internal funds,then to create a theoretical Model of Corporate External Direct Investment.It proves that the financing constraint is one of the main factors influencing the foreign direct investment theoretically.This paper based on Logit model and use the database of Chinese industrial enterprises in 2009 to verify the relationship between financing constraints and foreign direct investment,and further analyzes whether the constraint is the same when the financing of enterprises with different control rights from the perspective of corporate control.Through the empirical analysis,the results show that the financing problem is one of the main factors that restrict the foreign direct investment.When there is external financing constraint,the critical productivity of foreign direct investment required will rise.In the analysis of the division of control,the foreign direct investment of state-owned enterprises is not affected by the financing constraints,and the foreign direct investment of non-state-owned enterprises are obviously restricted by the financing problem.Therefore,to solve the problem of corporate finance should be mainly to solve the problem of non-state-owned enterprise financing,so it will help our enterprises go much better and further in the road of internationalization.