CEO political connections and OFDI of Chinese firms under the Belt and Road Initiative

Since the Chinese government proposed the Belt and Road Initiative (BRI) in 2013, Chinese firms have been actively investing in countries participating in BRI. What kinds of firms are willing to respond to this geopolitical policy? According to resource dependence theory and resource-based view, this study examines the impact of CEO political connections on outward foreign direct investment (OFDI) in the context of BRI and its boundary conditions. The results show that CEO political connections can promote firm OFDI under BRI. However, a good institutional environment in the home region and host country weakens the positive impact of CEO political connections. Furthermore, central state ownership has a substitute role for CEO political connections.