The Impact of Financing Constraints on Chinese Enterprises' OFDI

DOI

10.2991/metss-16.2016.51How to use a DOI?

Keywords

Internal financing constraints, External financing constraints, OFDI

Abstract

As Chinese government pushes forward "One Belt One Road" Initiative and further facilitates foreign investment, Chinese enterprises have the intensified incentives to go out. However, many enterprises face financial constraints. Do financial constraints affect enterprises' Outward Foreign Direct Investment (OFDI) behavior? The paper makes a comparative analysis of financial constraints between state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs). The paper concludes that whether private or state-owned enterprises OFDI behavior are significantly affected by the inner financing constraints. The credit financing constraint have significant inhibitory effect on the non-SOE' OFDI behavior, while the state-owned enterprises affected by the level of commercial credit is more obvious.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Qian Ze
AU  - Fang Sun
PY  - 2016/11
DA  - 2016/11
TI  - The Impact of Financing Constraints on Chinese Enterprises' OFDI
BT  - Proceedings of the 2016 3rd International Conference on Management, Education Technology and Sports Science (METSS 2016)
PB  - Atlantis Press
SP  - 247
EP  - 254
SN  - 2352-5428
UR  - https://doi.org/10.2991/metss-16.2016.51
DO  - 10.2991/metss-16.2016.51
ID  - Ze2016/11
ER  -