The Influence of Exchange Rate Fluctuations on Enterprise Innovation ——Panel Data Analysis Based on Stata

This paper illustrates the theoretical mechanism of the exchange rate fluctuation affecting the enterprise innovation and foreign exchange risk hedging playing a moderating role on it. We think that the exchange rate fluctuation on enterprise innovation may produce "incentive effect" or "inhibition effect". However, on the whole, the exchange rate fluctuation is not conducive to enterprise innovation. And foreign exchange risk hedging can ease the "inhibition effect" of exchange rate fluctuation on enterprise innovation by alleviating enterprise insufficient R&D investment and encouraging risk-taking behavior. This paper uses Stata software for analysis. On this basis, based on the GARCH (1, 1) model, this paper uses the RMB real effective exchange rate index from 2007 to 2015 to calculate the RMB exchange rate volatility, and uses the patent data of Chinese listed companies and the data of foreign exchange derivatives to build the fixed effect regression model for empirical research. The results show that the increase of exchange rate volatility will inhibit the number of patent applications of listed companies, and the increase in the use of foreign exchange derivatives can alleviate the "inhibition effect" of the increase of exchange rate volatility on enterprise innovation.