State ownership and Chinese private firms’ OFDI in developed economies

The study applies multiple logics based on institutional theory to explain how state ownership influences Chinese firms' outward foreign direct investment (OFDI). A sample of Chinese listed private firms is used to understand which logic dominates the relationship between Chinese private firms' state ownership and their OFDI in developed economies (OFDI-in-DE). We find that state ownership depresses Chinese private firms' OFDI-in-DE, supporting the institution-(in)compatible logic, and that government subsidies weaken this negative effect, while negative media coverage of these firms strengthens it. The findings imply that the institution-incompatible logic dominates the influence of state ownership on Chinese private firms' OFDI-in-DE.