Based on 2,440 large-scale foreign investment micro-samples of 609 Chinese companies from 2005 to 2016, this article comprehensively examines the impact of formal and informal institutional differences on the investment margin, model, and success or failure of enterprises. The study found that the difference in formal systems had little effect on investment scale, but it significantly affected investment diversification. In order to avoid the management risks caused by formal system differences, companies tend to choose a wholly-owned equity structure, but the choice of greenfield investment or cross-border mergers and acquisitions is not affected by formal system differences. In contrast, the impact of informal institutional differences is more extensive. Both formal and informal system differences will significantly increase the failure probability of corporate investment. Further research found that the Belt and Road Initiative mainly optimizes and complements the differences in formal systems. Research conclusions show that consolidating the Belt and Road Initiative, especially vigorously developing in-depth cultural exchanges with countries along the route, will help companies to go global faster and better.
