The Impact and Mechanisms of Chinese Banks'Globalization on the Performances of Chinese Overseas Investment Companies
The international expansion of Chinese banks offers crucial capital support and investment services to over-seas enterprises invested by China,promoting the high-quality development of Chinese enterprise'overseas direct investment.This paper investigates how the globalization strategy of Chinese banks affects the performance of overseas enterprises invested by China,focusing on both the impact and the mechanisms involved.Based on the data from 1994 to 2020 on the internationalization of Chinese commercial banks and the financial data of Chinese enterprises'overseas subsidiaries,this paper empirically examines the impact of Chinese banks'internationalization on the performance of Chinese overseas enterprises investment through a fixed effects model.The study finds that Chinese banks'globalization significantly improves the performance of Chinese overseas enterprises.Such improvement effect is heterogeneous depending on the host countries,industries and characteristics of overseas enter-prises.Mechanistic analysis shows that Chinese banks'going global improves the performance of Chinese overseas enterprises by easing external financing constraints and mitigating liability of foreignness.Additionally,the cross-border migration network strengthens the improvement impact on Chinese overseas enterprises'performance.Further analysis reveals that Chinese com-mercial banks'overseas expansion benefits the survival performance of China's overseas enterprises and helps them withstand the impact of banking crises in host countries.This paper offers several policy recommendations to enhance the role of Chinese banks'internationalization in supporting the high-quality development of China's enterprises'overseas direct investment.Firstly,continue to advance the international expansion of Chinese banks and expand their overseas networks to better support China's enterprises operating abroad.Sec-ondly,optimize the layout of Chinese banks'overseas institutions to unlock their growth potential.Thirdly,encourage Chinese banks to develop diversified products and services,identify the needs of overseas enterprises invested by China,and broaden their client base.Fourthly,proactively facilitate the outbound direct investment of China's enterprises by leveraging the finan-cial support available through the internationalization of Chinese banks.Fifthly,strengthen risk supervision and improve risk protection mechanisms of Chinese banks.
Chinese Banks'GlobalizationOverseas Direct Investment Enterprises'PerformanceFinancial Services for Real EconomyHigh-Quality Development of China's Foreign Direct Investment
NETL
NSTL
万方数据
