Studies on the "Belt and Road" Initiative's Effect on Construction Companies' Financial Performance

Coinciding with the year 2023 is the tenth anniversary of the "Belt and Road" program, whose execution over the previous 10 years has expanded development prospects for businesses and enabled Chinese corporations to "go global". The implementation of the "Belt and Road" initiative has brought more development opportunities for enterprises, allowing Chinese enterprises to "go global". Under the "Belt and Road" initiative, Chinese construction enterprises have built a large number of infrastructure projects for developing countries along the route through their technical advantages. In light of this, this study chooses microdata from 2011 to 2022 for China's A-share listed construction companies, and uses factor analysis, double difference method (DID) and propensity matching score method (PSM) to explore the impact of the "Belt and Road" initiative on the financial performance of construction enterprises. The study concludes that the financial performance of construction companies is significantly impacted by the Belt and Road Initiative, and the findings remain valid following the robustness test. Furthermore, we look into the possibility that the financing constraint acts as a mediator between the Belt and Road Initiative and the construction companies' financial performance. Our findings indicate that the financing constraint does indeed act as a mediator between the two.