State ownership and Chinese private firms’ OFDI in developed economies

En Xie, Fanshu Li, Zhan Wu and Vikas Kumar

Journal of World Business, 2024, vol. 59, issue 3

Abstract: The study applies multiple logics based on institutional theory to explain how state ownership influences Chinese firms’ outward foreign direct investment (OFDI). A sample of Chinese listed private firms is used to understand which logic dominates the relationship between Chinese private firms’ state ownership and their OFDI in developed economies (OFDI-in-DE). We find that state ownership depresses Chinese private firms’ OFDI-in-DE, supporting the institution-(in)compatible logic, and that government subsidies weaken this negative effect, while negative media coverage of these firms strengthens it. The findings imply that the institution-incompatible logic dominates the influence of state ownership on Chinese private firms’ OFDI-in-DE.

Keywords: State ownership; OFDI; Private firms; Institutional theory; China; Developed economies (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1016/j.jwb.2024.101534

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