Enterprise Heterogeneity, Host Country Characteristics and theChoice of Entry Mode of OFDI
CHENG Shi-xiong1,2, LIU Dan3
1.School of Economics, Fudan University, Shanghai 200433, China; 2.School of Business, Hubei University, Wuhan 430062, China; 3.School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China
Abstract This paper builds Logistic Binary Choice Model to analyze Chinese firms’ OFDI entry mode on the basis of Chinese firms’ OFDI samples collected from Zephyr Database from 2010 to 2015, combined with the relevant data from annual reports of these firms. The empirical analysis studies the influencing factors of Chinese firms’ OFDI entry mode in light of the combination of heterogeneous features of Chinese firms with national or regional features of host countries. The results confirm that bigger firms with relatively higher R&D level prefer greenfield investment. Cross-border Mergers & Acquisitions are preferred when the host country enjoys a higher level of governance with a bigger market size and a shorter cultural distance. In contrast, the strategic asset, management level, the productivity of the firm and the start-up cost in host country have no significant impact on the choice of Chinese firms’ OFDI entry mode.
CHENG Shi-Xiong,LIU Dan. Enterprise Heterogeneity, Host Country Characteristics and theChoice of Entry Mode of OFDI. Economic Survey, 2018, 35(4): 050.
2018, Vol. 35 
