Regional Social Networks and Enterprises’ Off-site Investment
ZHAO Jingyan1, JI Xiaoqing2, LI Guangqin3
1. School of Economics, Anhui University of Finance & Economics, Bengbu 233030, China; 2. School of Urban and Regional Science, Shanghai University of Finance & Economics, Shanghai 200433, China; 3. Schoolof International Trade & Economics, Anhui University of Finance & Economics, Bengbu 233030,China
Abstract Based on the off-site investment data of A-share listed companies in China from 2007 to 2021, this paper uses various estimation methods such as conditional Logit, negative binomial regression, and OLS to examine the impact and mechanism of regional social networks on the location selection of enterprise overseas investment. The study shows that the regional social network has a significant impact on the location choice of enterprises’ off-site investment. That is, the more developed the regional social network is, the more favorable it is to attract enterprise investment. This conclusion is still valid after a series of robustness tests. Mechanism analysis shows that the information transmission function, resource allocation function and network embedding function of regional social network can effectively alleviate the difficulties faced by investment enterprises, such as information asymmetry and resource shortage, and enhance the risk resistance of new subsidiaries. At the same time, regional social networks can also attract business investment by lowering the threshold for enterprises to invest locally. Heterogeneity analysis indicates that the influence of regional social network on the investment of non-state-owned enterprises, manufacturing enterprises and close enterprises is more obvious. The study enriches the research level of social networks and the literature on enterprise investment location selection, which has reference significance for improving investment efficiency and rational layout of enterprises.
2024, Vol. 41 
