The Motivations And Economic Effects Of Targeted Poverty Alleviation By Listed Companies

Poverty alleviation is the focus of social concerns,this issue is always the important approach to moderately prosperous society.Since 2013,when General Secretary Xi Jinping proposed "precision poverty alleviation" during a visit to Xiangxi,precision poverty alleviation has become an important poverty alleviation strategy for the country.As a part of participating society,enterprises are the backbone of participating in the implementation of precision poverty alleviation.Therefore,in order to better serve the national anti-poverty strategy,but also in order to better supervise and encourage listed companies to fulfill their social responsibilities,The Poverty Reduction Office of the State Council,together with a number of authoritative institutions,has selected a number of outstanding cases of precision poverty alleviation in the year,so as to publicize and promote learnable,credible and feasible poverty alleviation models and experiences,so as to help China's precision poverty alleviation work to better implement.This paper first introduces the excellent cases of precision poverty alleviation published by the Poverty Reduction Office of the State Council,analyzes the descriptive statistics and simple empirical models,summarizes the possible motivations of listed companies to participate in precision poverty alleviation,and explains the motivationaccording.Through analysis,we can see that listed companies participate in the precise poverty alleviation motivations are diverse.After that,this paper focuses on one of its cases,Muyuan shares as the research subject control analysis motivation.From a macro perspective,listed companies may participate in precision poverty alleviation because of political motivation,but also in response to national policies to practice social responsibility reasons;From a middle-angle perspective,in the case of poverty alleviation,the experience of the founder or controller of a listed company may also promote enterprises to participate in precision poverty alleviation,which can be expressed as a "local complex";From a micro point of view,the company may want to decrease the expense through this approach.In the demonstration of economic effect,the economic effect of Muyuan's participation in precision poverty alleviation is analyzed from the short-term market reaction and the long-term enterprise value by using the event study method and tobin Q value respectively.From the short-term use of event study method,the market response to the participation of listed companies in precision poverty alleviation may be positive,indicating that consumers recognize the company's contribution to precision poverty alleviation,from the long-term analysis of Tobin Q value,participation in precision poverty alleviation may lead to the company's long-term value increase.This paper also expounds its mechanism after the economic effect discussion,that is,participating in precision poverty alleviation in the short term will bring good signals,long-term to make listed companies optimize the development mode and increase long-term value.Finally,after reaching the corresponding conclusion,this paper also puts forward corresponding policy suggestions for the government,enterprises and the public,so as to help China's listed companies can better participate in precision poverty alleviation.