Extradition Treaties and Chinese Firms’ FDI Location Choice

时间：2022年10月21日10:30

地点：承泽园402教室

Abstract：

We examine China’s international cooperation on extradition as influences on Chinese firms’ host country selection for foreign direct investment (FDI). Although interstate cooperation is traditionally viewed as reducing knowledge-based uncertainty and facilitating cross-border investments, we contend that high-level interstate cooperation creates a risk in the cross-influence of institutions, which gives rise to firms’ concerns about security and cost when investing abroad. We focus on bilateral extradition cooperation which links the legal institutions of two countries and extends the influence of domestic jurisdiction from home to abroad. We hence propose that Chinese firms that aim to escape from China’s underdeveloped institutions should be less likely to enter host countries that have established extradition treaties with China. This negative impact of extradition treaties on FDI entry propensity could be lesser for Chinese state-owned enterprises because they decline to escape from domestic institutions. But the firms that have violated regulations in home country should respond to extradition treaties to a greater degree. We obtain empirical support for our hypotheses from a firm-level analysis on Chinese listed firms and their outward FDI in 106 foreign countries during 2001–2013.

个人介绍：

胡天佑 博士 澳门大学工商管理學院管理及市場學系助理教授

Dr. Tianyou Hu serves as Assistant Professor at Faculty of Business Administration of University of Macau. He obtained his Ph.D. degree from the NUS Business School of the National University of Singapore. He did his undergraduate study in the School of Foreign Languages of Peking University, along with a Dual Bachelor’s Degree in Economics from China Center for Economic Research (CCER) and an MBA from Guanghua Management School. Tianyou’s research interests span Strategic Management and International Business, focusing on topics of interfirm alliances and networks, and institutional environment and Foreign Direct Investment. Tianyou has published his work in Journal of International Business Studies, British Journal of Management, Management and Organization Review, etc.