This paper establishes an analytical framework for the institutional environment of international investment. Based on the framework，it accesses the impact of such an environment on Chinese enterprises’ overseas investment. Econometric analysis on listed companies for the 2003-2016 period demonstrates that companies tend to invest in countries with better institutional environment and lower institutional risks，and the improvement of political systems plays a significant role in promoting investment. This paper also analyses latest developments in global investment regime and proposes countermeasures at both the state and firm levels.