Abstract

The application of zero-inflated model to the determinants of international direct investment outflow direction - evidence from Chinese acquiring technology overseas merger and acquisition

Author(s): Wang Ying Chun, Wang Qian, Ji Ke

Zero-inflated model belong to the compound counting model used to process discrete or discrete data with too much zero value of Poisson distribution or negative binomial distribution. This study select the sample of Chinese enterprises ’seeking technology overseas merger and acquisition, through analyzing the influential factors of capital outflow direction, try to prove that zero expansion models is a appropriate tool when data contains a large number of zero values. According to the research results, we find that the total trade volume and the gap of the corrupting level between the host country and China have a significant positive impact on cross-border merger and acquisition, Meanwhile, The cultural gap and the Gap of the income tax rates have a significant negative impact to the direction of capital outflow. However, the distance, the degree of financial deepening and Technical level of labors are not significant in the ZINB regression.