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Does the national risk of overseas investment affect the strategic innovation behavior of enterprises? Evidence from China

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  • Cheng Peng
  • Hui Jiang
  • Tianyi Zhang

Abstract

From the micro‐perspective of enterprises, this paper makes an empirical analysis on how the national risk of overseas investment affects the strategic innovation behavior of enterprises by using the samples of A‐share listed companies in China from 2010 to 2019 and emphatically tests the mechanism of the national risk of overseas investment on the strategic innovation behavior of enterprises through government subsidy and media attention. It is found that, on the whole, the national risk of overseas investment will promote the strategic innovation behavior of enterprises. In terms of mechanism, the national risk of overseas investment promotes the strategic innovation behavior of enterprises by increasing the access to government subsidy, while the mediating effect of the media attention to the national risk of overseas investment on the strategic innovation behavior of enterprises is the masking effect; that is, the national risk of overseas investment inhibits strategic innovation behavior of enterprises by increasing media attention, and this indirect inhibition weakens the direct promotion of the national risk of overseas investment to strategic innovation behavior of enterprises.

Suggested Citation

  • Cheng Peng & Hui Jiang & Tianyi Zhang, 2022. "Does the national risk of overseas investment affect the strategic innovation behavior of enterprises? Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1548-1565, July.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:5:p:1548-1565
    DOI: 10.1002/mde.3473
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