Abstract

This study examines the relationship between corporate financialization and outbound investment effectiveness based on empirical data from Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2022. The study finds that corporate financialization greatly improves investment efficiency by alleviating financial constraints and reducing operating costs. The study provides insight into the implications of financialization for firms’ investment efficiency in foreign markets and generates significant guidance for practitioners.

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