Economic policy uncertainty and textile enterprises’ overseas investment modes: mergers and acquisitions or greenfield investment?

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Utilising Chinese listed company outward investment data from 2004 to 2022, this study examined the impact of economic policy uncertainty on the overseas investment modes of Chinese textile firms. Empirical research results demonstrated that: the higher the host country economic policy uncertainty, the greater the inclination of textile enterprises to select overseas merger and acquisition modes; the higher the home country economic policy uncertainty, the greater the probability that textile enterprises were inclined to choose overseas merger and acquisition modes; when home country economic policy uncertainty exceeded that of the host country, textile firms were more likely to select greenfield investment in the host country; the moderation mechanism indicated that textile enterprises with higher productivity were more inclined to choose overseas merger and acquisition modes in host countries with higher economic policy uncertainty. The research findings provided guidance for multinational textile enterprises in responding to international uncertainty risks and selecting superior overseas investment modes to participate in international competition.