An empirical study on the ownership choice of Chinese MNEs

Abstract

On the international expanding model choice, little attention had been paid to the MNEs from developing countries. Drawing on a sample of 279 overseas subsidiaries invested by Chinese MNEs, the paper examines the factors of influencing the choice between wholly owned subsidiary and joint venture. The binomial logistic regression results show that the host countries' risk, the resource-based industry and the model of establishment have significant positive impact on the preference of joint venture. As a special consideration, the Central Stated-owned Enterprises prefer to choose joint ventures also. Moreover, unlike the MNEs from developed countries, the Chinese MNEs with high R&D intensity are more likely to set up international joint ventures.