Beyond Borders: How Institutional Ownership Drives Chinese Firms’ International Expansion
研究机构所有权对中国企业对外直接投资的影响，发现压力抵抗型机构持股能提升投资规模、广度和速度，并通过缓解融资约束、降低代理成本等机制发挥作用。
ABSTRACT From the standpoint of the “resource effect” and the “monitoring effect”, this paper explores the potential influence of institutional ownership on the outward foreign direct investment (OFDI) activities of Chinese enterprises. Our empirical results indicate that institutional ownership, particularly pressure‐resistant institutional ownership, notably elevates the extent of a firm's multinational investment endeavors, as measured by the scale, breadth, and speed of OFDI. Furthermore, the concentration of institutional ownership amplifies this beneficial impact, whereas negative media exposure attenuates it. In periods of elevated economic policy uncertainty, the salutary effect of institutional ownership on firms’ multinational investment activities becomes even more pronounced. Lastly, our findings provide additional insights, revealing that institutional ownership enhances firms’ internationalization strategies by mitigating financing constraints, curbing agency costs, fostering a higher propensity for risk‐taking, and augmenting information transparency. Collectively, we provide micro evidence on the relationship between institutional ownership and corporate globalization strategy decisions from China, and provide valuable insights for emerging market countries to accelerate the cultivation of new advantages in international economic cooperation and competition.