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Does investing in countries along the belt and road reduce firms’ downside risk? Evidence from Chinese manufacturing firms

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  • Zhou, Chao
  • Lin, Feng

Abstract

Investing in Belt and Road countries (BR countries) has emerged as an important strategic choice for Chinese firms seeking to integrate into the global economy. Using a sample of Chinese A-share listed manufacturing firms from 2000 to 2021, this study investigates whether investments in BR countries can reduce firms’ downside risks. We discover that investing in BR countries can help Chinese firms reduce their downside risks. Furthermore, our analysis reveals that state ownership weakens and institutional ownership strengthens the downside risk reduction effect of investment in BR countries.

Suggested Citation

  • Zhou, Chao & Lin, Feng, 2023. "Does investing in countries along the belt and road reduce firms’ downside risk? Evidence from Chinese manufacturing firms," Finance Research Letters, Elsevier, vol. 58(PB).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323007717
    DOI: 10.1016/j.frl.2023.104399
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    References listed on IDEAS

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