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Financial policy competition neutrality and the efficiency of outward foreign direct investment

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  • Tang, Qi
  • Deng, Wanqiu

Abstract

Outward foreign direct investment is an important way for enterprises to participate in international economic cooperation and competition and to build a global “community of interest” and “community of destiny”, and it has become a key issue of concern and research in the academic world. However, existing studies have paid less attention to the willingness or motivation mechanism of OFDI, especially the lack of in-depth research on which motivational factors can drive enterprises to implement OFDI and effectively improve its efficiency. Therefore, based on the capital level perspective, this paper empirically finds, with empirical evidence from Chinese listed multinational corporations from 2009 to 2022, that competitive financial policy neutrality significantly improves OFDI efficiency; at the same time, the capital level strengthens such a facilitating mechanism. The findings provide practical guidance for the government to pay sufficient attention to financial policy competitive neutrality and perceive the incentives of firms' outward investment.

Suggested Citation

  • Tang, Qi & Deng, Wanqiu, 2024. "Financial policy competition neutrality and the efficiency of outward foreign direct investment," International Review of Financial Analysis, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:finana:v:92:y:2024:i:c:s1057521924000085
    DOI: 10.1016/j.irfa.2024.103076
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    References listed on IDEAS

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    Cited by:

    1. Yan, Jiajia & Zhang, Chenyan, 2024. "Financial institution agglomeration and corporate labor allocation efficiency—Based on the context of government debt expansion," Finance Research Letters, Elsevier, vol. 63(C).

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