Does Foreign Currency Debt Financing Promote The Innovation Of Multinational Enterprises?

In recent years,one belt,one road initiative has been put forward and implemented.The degree of opening up to the outside world has been further expanded,and the level of foreign currency debt financing of domestic enterprises is also expanding.At the same time,in the key period of implementing innovation driven development strategy and realizing economic transformation,it is of great theoretical and practical significance for enterprises to carry out foreign currency debt financing to promote their innovation level.Therefore,this paper uses the data of Chinese A-share multinational listed companies to study the impact of foreign currency debt financing on the quantity and quality of enterprise innovation.The results show that the use of foreign currency debt financing promotes the synchronous improvement of innovation quantity and quality,and the higher the proportion of foreign currency debt financing,the more innovation quantity and innovation quality of enterprises increase.Further mechanism tests show that the use of foreign currency debt financing can promote enterprise innovation by reducing the debt financing cost of listed companies,improving their financing ability,reducing financial expenses,alleviating the lack of R&D investment,and promoting them to increase more R&D investment.Then,after overcoming the possible endogeneity of the model and carrying out a series of other robustness tests,the above conclusions are still valid.This paper extends the research of foreign currency debt financing and its impact from the aspects of Financing Motivation and enterprise value to the aspect of enterprise innovation,which provides a new perspective and evidence for the research of foreign currency debt financing and its impact,and also makes a supplement for the research of currency structure's impact on Enterprise Innovation in the heterogeneity of debt financing.