Performance of Foreign-Invested Enterprises in Shaanxi - An Empirical Analysis
Tao Wang, Duo Wang
Since the reform and opening up, the role of foreign investment should not be overlooked. However, FDI showing a large area of loss in China in recent years, and the loss rate is more than 50 %. Facing with such serious losses of FDI, we should carefully explore the main factors that affect foreign-invested enterprises management, and research the possible reasons that cause the operating loss of the FDI. This paper mainly uses the method of empirical research, the data are form the financial information of 1165 foreign-invested enterprises which participated the joint inspection of Shaanxi Province in 2014, after screening we take the remaining 817 enterprises as the sample data. First, through making some descriptive analysis for the Operation performance and the loss characteristics of the foreign enterprises in Shaanxi, we find the foreign enterprises loss rate is obviously positive with Scale and YEAR. Then, we combine the conclusion of the descriptive analysis, plug the main factors into the logistic regression model, get the Logistic regression equation, and find the overall losses of foreign enterprises in Shaanxi are related to LnScale, YEAR, DAR and TAT. Finally, we draw some conclusions.
Keywords: Foreign direct investment, Operation performance, Influence factors, Logistic regression
Edition: Volume 5 Issue 3, March 2016
Pages: 2016 - 2019