Institutional Shareholding,Private Enterprises Participate In Poverty Alleviation And Debt Financing Costs

The government attaches great importance to the positive role of private enterprises in poverty alleviation.However,at present,the enthusiasm of private enterprises to participate in poverty alleviation is not high.Existing researches mainly discuss the strategic significance of private enterprises' participation in poverty alleviation from the perspective of poverty alleviation effect in poor areas,but ignore the impact of participation in poverty alleviation on development of private enterprises.For a long time,Chinese private enterprises have been facing the problem of expensive debt financing in the development process.Compared with state-owned enterprises,the cost of debt financing of private enterprises is 2 percentage points higher on average.From the perspective of debt financing cost,this paper discusses the economic consequences of private enterprises' participation in poverty alleviation and their differences in different external governance environments.It will help clarify the motivation of private enterprises to participate in poverty alleviation,provide a new perspective for private enterprises to reduce debt financing costs,and provide empirical evidence for how to guide private enterprises to take advantage of their advantages to participate in poverty alleviation.This paper systematically reviews the economic consequences of private enterprises' participation in poverty alleviation,social responsibility and debt financing costs,and the impact of institutional shareholding on social responsibility and financing costs.Based on the theory of signal transmission,the theory of stakeholders and the theory of resource dependence,this paper studies the mechanism of private enterprises participating in poverty alleviation and industry poverty alleviation to reduce debt financing cost,and the difference of influence under the ownership of heterogeneous institutions.Taking a-share private listed companies from 2016 to 2018 as samples,the empirical test found that private enterprises' participation in poverty alleviation and industryparticipation in poverty alleviation can reduce debt financing costs.Furthermore,compared with pressure-sensitive institutional investors,only pressure-resistant institutional investors can promote the effect of private enterprises' participation in poverty alleviation and industrial poverty alleviation on debt financing costs.Finally,the paper also finds that compared with private enterprises in other provinces,private enterprises in provinces with national poverty counties participate in poverty alleviation and participate in industrial poverty alleviation have a more significant negative effect on debt financing costs.On this basis,this paper puts forward the Suggestions of improving the enthusiasm of private enterprises to participate in poverty alleviation,strengthening the supervision and governance role of institutional investors,and improving the poverty alleviation information disclosure to provide more effective information for creditors.The main contributions of this paper are as follows: firstly,from the perspective of private enterprises' own development,it enriches the research on the economic consequences of private enterprises' participation in poverty alleviation,and provides a new perspective for encouraging private enterprises to actively participate in poverty alleviation.Secondly,it enriches the literature related to the factors affecting the debt financing cost of private enterprises and the positive governance effect of institutional shareholding,and provides a new way for private enterprises to reduce the debt financing cost.Finally,taking the data of private listed companies as samples,it provides empirical evidence that the participation of private enterprises in poverty alleviation can reduce debt financing costs.