Do Financial Constraints Affect Chinese Firms’ Outward FDI Behavior? A Theoretical and Empirical Analysis Based on the Micro Perspective
LIU Liya, HE Yanlin, WANG Zhaofei, CHEN Tianxiao
School of Finance, Shanghai University of Finance and Economics; Department of Strategic Development, FuDian Bank Co., Ltd.; Postdoctoral Work Centre, Guo Tai Jun’an Securities Co., Ltd.
Abstract:
Since China launched its ‘Go Global’ policy, there is a magnificent trend of Chinese firms conducting foreign direct investment. But Chinese firms face severe financial constraints with undeveloped financial market. So as an important source of firm heterogeneity, do financial constraints have significant effect on Chinese Firms’ Outward FDI Behavior? Through detail theory and empirical analysis under micro perspective, we show that: Chinese firms generally face financial constraints when they invest abroad; for firms in highly dependent on external financing industry, this effect is more severe; but for firms with productivity advantage, the negative effect will be less severe.
刘莉亚, 何彦林, 王照飞, 程天笑. 融资约束会影响中国企业对外直接投资吗？——基于微观视角的理论和实证分析[J]. 金融研究, 2015, 422(8): 124-140.
LIU Liya, HE Yanlin, WANG Zhaofei, CHEN Tianxiao. Do Financial Constraints Affect Chinese Firms’ Outward FDI Behavior? A Theoretical and Empirical Analysis Based on the Micro Perspective. Journal of Financial Research, 2015, 422(8): 124-140.
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