While anecdotal evidence exists that many Chinese outward foreign direct investment (OFDI) have failed due to a range of factors, it is also clear that some Chinese OFDI has been very successful. There is little empirical research so far on the financial performance of Chinese OFDI and its influencing factors. This study seeks to fill these research gaps. Using a sample of companies that have received major Chinese OFDI and are listed on the Australian Securities Exchange, we examine the financial performance of Chinese OFDI. The study found that performance varied substantially and depended on the influences of several entry factors, including entry timing, developmental stage of the target companies, and ownership level. Using multiple theoretical frameworks, including the institutional perspective, resource-based view, and transactional cost theory, we discuss the causes of these influencing factors and outline their consequences. Several practical implications are proposed.
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