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Government subsidies, data assets, and firm outward foreign direct investment

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  • Yang, Shaoyu
  • Lu, Yang

Abstract

This study develops a data asset dictionary based on the data value chain framework, and examines how corporate data assets affect outward foreign direct investment (OFDI) and how government subsidies moderate this relationship. The results show that data assets significantly increase both the likelihood and scale of OFDI, highlighting their strategic value in driving international expansion. Specifically, firms with higher data asset endowments are more likely to engage in overseas investment, make more frequent investment moves, and commit larger investment amounts. Additionally, government subsidies can amplify these effects.

Suggested Citation

  • Yang, Shaoyu & Lu, Yang, 2025. "Government subsidies, data assets, and firm outward foreign direct investment," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325015429
    DOI: 10.1016/j.frl.2025.108288
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    References listed on IDEAS

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    1. Yang, Liguo & Li, Jingjing & Liu, Xintong, 2026. "Can corporate data assets gain preference? Evidence from supply chain financing," Finance Research Letters, Elsevier, vol. 89(C).

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