Policy Coordination and Corporate Global Expansion

The relationship between “policy enthusiasm” and “corporate reluctance” has become a focal point for both academia and policymakers. This study employs data from Chinese A-share listed companies (2002–2024) and big data from local government work reports, utilizing a fixed-effects model to empirically examine the impact of policy coordination on corporate globalization. Findings reveal that policy coordination significantly promotes corporate globalization. Specifically, stronger government coordination in governance objectives correlates with higher frequencies of corporate foreign direct investment. Further analysis reveals that policy coordination enhances corporate internationalization through three pathways: reducing transaction costs, increasing the real option value of overseas strategic assets, and internalizing institutional advantages. The promotional effect is more pronounced for state-owned enterprises and firms in western China. This study illuminates the significant impact of internal structural characteristics within the policy system on corporate internationalization strategies, deepens micro-mechanism research on the institutional foundation perspective, and provides empirical evidence and policy insights for building a holistic government and enhancing the global competitiveness of Chinese enterprises.