A Study on the Influence of the Host Country’s Legal System on the Performance of Chinese Enterprises’ Foreign Direct Investment Empirical analysis based on micro data of Chinese listed companies

摘要

In recent years, while the direct investment of Chinese enterprises has made rapid progress in foreign direct investment, it has also shown a trend of “blindness” and “irrationality”, which has brought huge overseas investment risks. The reason is largely due to foreign investment enterprises ignore the host country’s legal system. This paper uses 82 foreign direct investment data of Chinese listed companies in 30 countries (regions) from 2010 to 2019 as a research sample to analyze the impact of the host country’s legal system on the performance of Chinese companies’ foreign direct investment. The results show that the performance of Chinese enterprises’ investment in the country has gradually improved with the improvement of the economic development level of the host country, the soundness of the legal system of the host country has been continuously improved. The restraining effect of the soundness of the host country’s legal system on investment performance is more obvious in state-owned enterprises and investments involving sensitive industries or key areas. In addition, the performance of investment enterprises will gradually improve with the increase in the density of labor unions and the international investment experience of enterprises.