Does Digital Transformation Improve the Efficiency of Chinese Multinational Enterprises'Overseas Investment
Multinational enterprises(MNEs)are an important link in the development of the"dual circulation"economy.The scale of Chinese MNEs'overseas investment is expanding,but there is still a gap between China's overseas investment efficiency and that of developed countries.China's overseas investment has great potential for development,and how to improve the efficiency of enterprises'overseas investment is an important issue of concern to the academic community.Does digital transformation enhance the efficiency of Chinese MNEs'overseas investment?This issue has not been discussed in the existing literature.This paper measures the efficiency of Chinese MNEs'overseas investment and finds that although the scale of enterprises'overseas investment has been expanding,there is still a gap between the efficiency of overseas investment and that of developed countries.The overseas investment efficiency of Chinese MNEs needs to be improved.Driven by the digital economy,the comprehensive application of digital technology has reshaped the resource endowment and production capacity of enterprises and reduced the agency costs of MNEs,which has provided new opportunities for the internationalization of MNEs in emerging economies.Based on data at the firm-year-country level from 2008 to 2021,this study finds that digital transformation has significantly improved the efficiency of MNEs'overseas investment,and further finds that the diversity of professional background of the board enhances the positive effect of digital transformation.Mechanism analysis shows that digital transformation enhances the efficiency of MNEs'overseas investment mainly through curbing management short-sightedness,improving corporate risk-taking,and reducing agency costs.The results show that the efficiency-enhancing effect of digital transformation on overseas investment is more pronounced in non-state-owned and manufacturing firms.Managers'awareness of digital transformation has a more significant impact on the efficiency of overseas investment.Chinese enterprises should emphasize the quality of their overseas investment and should not carry out overseas investment activities blindly and randomly.MNEs should choose appropriate overseas investment strategies based on their own endowments and industry characteristics.Governments should promote digital technology as an important initiative to improve the efficiency of enterprises'overseas asset allocation and enhance the resilience of global value chains.The governance efficiency and scientific decision-making of the board of directors are directly related to the sustainable development of the enterprise.Companies need to select board members with a broader background of characteristics when recruiting talents.This study can provide policy reference and practical support for the government to accelerate the digital transformation and pursue high-standard opening up.
digital transformationoverseas investment efficiencymultinational enterprisesdiversity of professional background of the board
万方数据
维普
