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Geopolitical risk, digital transformation, and corporate outward foreign direct investment

Author

Listed:
  • Wen, Yunze
  • Tao, Yuanhong
  • Tang, Haoyun

Abstract

This study uses data from A-share listed companies from 2012 to 2022 as the research sample to assess the impact of geopolitical risk and digital transformation on enterprises’ outward foreign direct investment (OFDI) behavior. Geopolitical risk is detrimental to OFDI, digital transformation can significantly promote OFDI, and financing constraints mediate the relationship between digital transformation and OFDI. The impact of digital transformation on OFDI varies between state-owned and non- state-owned enterprises.

Suggested Citation

  • Wen, Yunze & Tao, Yuanhong & Tang, Haoyun, 2024. "Geopolitical risk, digital transformation, and corporate outward foreign direct investment," Finance Research Letters, Elsevier, vol. 69(PA).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324012005
    DOI: 10.1016/j.frl.2024.106171
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    References listed on IDEAS

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    Cited by:

    1. Deng, Youyi & Jiang, Hong-Dian, 2025. "Are geopolitical risks reshaping the global energy trade networks? A global perspective," Energy Economics, Elsevier, vol. 149(C).
    2. Zhao, Zhe & Mao, Qi, 2025. "Who can survive under the pressure of “quality”? A study on the digital transformation and financial stability of tourism enterprises," Finance Research Letters, Elsevier, vol. 85(PE).
    3. Zhang, Heting & Tian, Lin, 2025. "Risk hedging: How geopolitical risks affect enterprises' overseas merger and acquisition?," International Review of Economics & Finance, Elsevier, vol. 102(C).
    4. Huang, Guangfeng & Wu, Shuying & Chen, Lishuang, 2025. "The belt and road initiative, outward foreign direct investment, and technological innovation," Finance Research Letters, Elsevier, vol. 77(C).
    5. Sun, Meng & Yang, Jihong, 2025. "Business environment facilitation in RCEP countries and China’s OFDI: a mechanism analysis based on the depth of regional trade agreements," Finance Research Letters, Elsevier, vol. 86(PF).

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    Keywords

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    JEL classification:

    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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