Abstract:As an important part of China’s capital market opening, the liberalization of foreign capital not only promotes the interconnection of capital elements at home and abroad, but also has a profound impact on micro enterprise behavior. Taking China’s A-share listed companies from 2007 to 2017 as the research sample, this paper empirically tests the impact of foreign capital entry on the risk-taking of domestic enterprises. The results show that foreign capital entry can significantly improve the risk-taking level of enterprises. Further research shows that the promotion effect of foreign capital entry on enterprise risk-taking is more significant in enterprises in areas with severe financing constraints, higher equity concentration and slow marketization process. In addition, in different levels of capital market opening, the effect of foreign capital entry on enterprise risk-taking is significantly different.