An Empirical Research On The Influencing Factors Of OFDI Model Of State-owned Enterprises

As an important force in China’s implementation of the "going global" strategy,the OFDI of state-owned enterprises occupies the main position of China’s.However,the political label of state-owned enterprises determines that they show the political intention of the country when acquiring the strategic assets and market resources of the host country.On the one hand,the OFDI behavior of state-owned enterprises is easy to lead to the resistance of the host country.On the other hand,the national strategic mission undertaken by state-owned enterprises makes it easier for them to obtain the support of the government.While the academic community has not paid enough attention to this angle,my paper defines the research object as state-owned enterprises and explores the influencing factors of the choice of OFDI mode of them,in order to provide some theoretical reference and countermeasures for their long-term overseas development.Firstly,this paper shows the overall situation of OFDI of state-owned enterprises over the years from the perspective of total amount and mode selection.Then,after expounding the relevant theoretical basis,this paper puts forward the hypotheses of this research about how the productivity and motives of internationalization affect the OFDI model of state-owned enterprises and how the regulatory effect of government subsidies works.After that,this paper builds a new OFDI database of state-owned enterprises by using CSMAR overseas affiliated enterprise database from 2006 to 2020,Zephyr M&A database and China global investment tracking database.On this basis,this paper constructs a binary and discrete Logit model for empirical analysis,and explores the differential impact of internationalization experience and heterogeneity of subject.The main conclusions of this paper are as follows:(1)the stronger the motive of internationalization of state-owned enterprises about market seeking,the more likely they are to adopt the mode of overseas M&A when implementing foreign direct investment,while the stronger the motive of internationalization of state-owned enterprises about seeking strategic assets,the more inclined they are to choose the OFDI mode of Greenfield construction.(2)The higher the productivity of state-owned enterprises,the more likely they are to adopt the mode of overseas M&A;(3)Governmental subsidies positively regulate the relationship between productivity,motives of internationalization and OFDI mode of state-owned enterprises;(4)State-owned enterprises with international experience and central-control subject are more sensitive to the impact of productivity and motives of internationalization when choosing OFDI mode.Finally,based on the conclusions,the suggestions are put forward:firstly,carefully evaluate the productivity of state-owned enterprises and reasonably select OFDI mode;Secondly,weaken the political obstacles of the host country and improve the environment of strategic-asset-seeking OFDI;Thirdly,actively promote the overseas M&A of state-owned enterprises to ensure the progress of market-seeking OFDI;Finally,guide the state-owned enterprises to use the governmental subsidies fully and rationally.