Study on the Financial Performance Evaluation of Outward Foreign Direct Investment on Listed Forestry Companies

In this study, we examine the influence of companies' outward foreign direct investment on fmancial performance based on a sample of 6-years observations for the listed forestry companies which implemented outward foreign direct investment during 2008 to 2012. Super efficiency CCR model of DEA is used as the model. The empirical results show that, during the six years of research window, listed forestry companies' financial performance stably rise at first and then fall sharply, followed with a slow rising and then a slight decline. The results support for a U-shaped financial performance development. In general, it appears that outward foreign direct investment improves the fmancial performance of the company.