The Research on Diversity of Financial and Insurance Ecosystem Promoting Overseas Investment Efficiency

DOI: https://doi.org/10.62517/jse.202411223

Author(s)

Meng Yu*

Affiliation(s)

School of Insurance, Shandong University of Finance and Economics, Jinan, Shandong, China *Corresponding Author.

Abstract

Based on the research perspective of bank traceability, this paper examines the dynamic impact of the financial ecological diversity of the Belt and Road countries on the efficiency of Chinese firms’ overseas investment from a dynamic perspective. The conclusion shows that the distributions of Chinese commercial banks in the countries along the routes can promote the efficiency of Chinese firms’ overseas investment. The promoting effect increases with the increase of the number of distribution points, but the improvement degree of each distribution site on the efficiency level of firms’ overseas investment shows a weakening trend. Further research shows that the distributions of Chinese commercial banks have significant heterogeneous effect on the overseas investment efficiency of Chinese firms. Specifically, in terms of firm development stage, the overseas distributions of Chinese commercial banks have a more significant effect on the overseas investment efficiency of newly listed firms. In terms of firm financing constraints, the distributions of Chinese commercial banks have a more significant effect on the overseas investment efficiency of firms with high leverage ratio. In terms of firm investment strategy, the advance distributions of Chinese commercial banks in the countries along the route effectively alleviate the overseas under-investment of non-sequential firms.

Keywords

Overseas Investment Efficiency; Financial and Insurance Ecology; Bank Following

References

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