Is the usage of ON DELETE CASCADE wrong or not allowed on wordpress?

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I have table with foreign key reference and i recently changed the create table query with ON DELETE CASCADE 

$wpdb->query("DROP TABLE IF EXISTS $table_name2");  
    //CREATE TABLE bmg_CompanyCategoryCross
        $sql = "CREATE TABLE IF NOT EXISTS $table_name2 (
        id mediumint(9) NOT NULL AUTO_INCREMENT,
        companyid mediumint(9) NOT NULL,
        categoryid mediumint(9) NOT NULL,       
        PRIMARY KEY  (id),
        FOREIGN KEY  (companyid) REFERENCES $table_name(id) ON DELETE CASCADE,
        FOREIGN KEY  (categoryid) REFERENCES $table_name3(id)
    ) $charset_collate;";
         $wpdb->query($sql);

This table is creating on my local machine but not on live server. Is the usage of ON DELETE CASCADE wrong or not allowed on wordpress?

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