Author(s)

Jiangrong Lan ¹

Affiliation(s)

¹ International College, Guangxi University, 100 East University Road, Nanning, Guangxi, China

Corresponding Author

Jiangrong Lan

ABSTRACT

Under the background of the new development pattern of the new normal, the domestic cycle as the main body and the domestic and international cycles, the internationalization behavior of enterprises has been promoted to strategic significance. Based on this paper, the data of China's Shanghai and Shenzhen A-share listed enterprises in 2009-2019 are selected to study the impact of corporate social responsibility on the probability and scale of enterprises' external direct investment. It is found that the CSR promotes the probability and scale of OFDI, but the influence of shareholder liability on the scale; the benchmark regression results are heterogeneous. Compared with private enterprises and non-sensitive industries, CSR has a stronger positive impact on the probability and scale of sensitive industries. Further discussing the mechanism reveals a negative impact on the scale of enterprises, by reducing the level of corporate leverage and financing constraints. From the perspective of corporate social responsibility, this paper expands the theoretical application scope of stakeholders, and provides relevant suggestions for enterprises to "go out".

KEYWORDS

OFDI, corporate social responsibility, financing constraints, leverage level

CITE THIS PAPER

Jiangrong Lan, Research on Corporate Social Responsibility and Foreign Direct Investment in China. Financial Engineering and Risk Management (2023) Vol. 6: 19-30. DOI: http://dx.doi.org/10.23977/ferm.2023.060203.

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