A Study On Foreign Exchange Risk Exposure Of Chinese Multinational Enterprises And Its Influencing Factors

Since the reform of the RMB exchange rate system in 2005,the RMB began to implement a floating exchange rate system based on market supply and demand and adjusted by reference to a basket of currencies.Due to the market-oriented reform of China's exchange rate system,exchange rate fluctuations began to intensify,China's multinational enterprises began to bear more and more foreign exchange risks.How to accurately measure the foreign exchange risk exposure of Chinese multinational enterprises and make judgments on its influencing factors has become an important issue.By summarizing and analyzing the previous research results,this thesis constructs a more suitable model for China's market based on the characteristics of the largest developing countries,and measures the degree of foreign exchange risk exposure and its influencing factors of China's multinational enterprises within the research range of 2010-2017.The results show that there is a significant foreign exchange risk exposure in China's multinational enterprises.Further cross-sectional study shows that at 1%confidence level,46%of the sample enterprises show that there is at least one foreign exchange risk exposure.After that,this thesis studies the influencing factors of foreign exchange risk exposure.In terms of macro factors,the economic and trade exchanges between the two countries are close.Since 2018,the trade friction between China and the United States has been escalating.Will it aggravate the foreign exchange risk exposure of China's multinational enterprises?This paper takes January 2018 as the time node to determine the escalation of Sino US trade frictions.Based on the data of the two years before and after Sino US trade frictions in 2016-2019,the results show that there is indeed a heterogeneity impact on the trade frictions between China and the United States,which will further aggravate the foreign exchange risk exposure of China's multinational enterprises.Then,from the perspective of micro influencing factors:from the perspective of internal enterprises,we not only consider the traditional factors such as enterprise scale,operating capacity and liquidity level in the past research,but also consider the impact of internationalization level of multinational enterprises.Based on the definition of multinational enterprises in this paper,we build the measurement indicators of enterprise internationalization.The results show that there is a significant positive correlation between the level of internationalization of multinational enterprises and the level of foreign exchange risk exposure of enterprises.At the same time,there is a significant negative correlation between the turnover rate of current assets and foreign exchange risk exposure.Finally,based on the research results of this paper,we put forward corresponding policy recommendations to the government and enterprises from the macro and micro level,hoping to effectively help Chinese enterprises reduce enterprise risk,improve enterprise value,and promote the healthy development of China's real economy.