The Research On The Performance Of Targeted Poverty Alleviation In Listed Companies

With the publication of a series of documents encouraging listed companies to actively participate in target poverty eradication in 2016,listed companies are increasingly playing an important role in helping the government to eradicate target poverty.The participation of publicly traded companies in target poverty alleviation can alleviate government fiscal pressures and help governments better complete their target poverty alleviation efforts.Listed companies can also get government support,good social reputation and positive market performance.In addition,Ningxia has a number of publicly traded companies participating in target poverty alleviation,of which Baofeng Energy’s poverty alleviation effect is very important.So,Baofeng Energy’s Target Poverty Reduction Participation Case Study helps guide the same type of local publicly traded companies to better participate in Target Poverty Reduction.Baofeng Energy,a leading company in the Ningxia Hui Autonomous Region,has done well in the precision poverty eradication project.Research on Baofeng Energy’s precision poverty alleviation performance can provide better case support,and provide a reference for other listed companies of the same type and industry in the same region to participate in precision poverty alleviation.This article analyzes the performance of Baofeng Energy’s target poverty alleviation engagement primarily in two aspects.Analyzing the financial performance of Baofeng Energy’s target poverty alleviation participation from 2016 to 2019,Baofeng Energy’s own profitability and financial performance were excellent.Baofeng Energy is a company committed to poverty alleviation in Ningxia,whose fiscal performance indicators outperform elites with less targeted poverty alleviation efforts.Analysis of Baofeng Energy’s market performance indicators after listing showed that the market has gained some recognition for Baofeng Energy,the market response is positive,and the market performance is good.Compared to Yinglite’s small poverty alleviation efforts,Baofeng Energy’s Tobin Q value is higher than that of Yinglite.In other words,the market performance is also better than Yinglite.Through research and analysis,this article believes that there are two main mechanisms of Baofeng Energy target poverty alleviation that affect performance.First,participating in target poverty alleviation can earn government subsidies and tax-free preferences,while participating in target poverty alleviation can help businesses enjoy more government subsidies and tax-free preferences,which can help businesses increase operating revenue and reduce operating costs.It has a positive impact on corporate performance.Second,participation in target poverty alleviation can reduce financing constraints and financing costs for Baofeng Energy,which has a positive impact on corporate performance.Finally,this article presents three levels of suggestions for the findings of the study,which are summarized as follows:First,the government needs to increase subsidies to alleviate corporate poverty.Improve the system of oversight for corporate participation in poverty eradication.Establish a scientific evaluation system for the effectiveness of the company’s target poverty alleviation.Build a communication platform for businesses.Second,companies should pay attention to how they fulfill their corporate social responsibilities aimed at eradicating poverty.Support poverty alleviation,decide how to alleviate poverty based on your own circumstances and external circumstances.Timely and accurate disclosure of information related to poverty eradication.Third,the market should recognize the contribution of listed companies to poverty eradication,establish an appropriate system to regulate the disclosure of social responsibility information of listed companies,and protect the rights and interests of information users.Financial institutions can also reduce financing costs by offering preferential policies to listed companies participating in targeted poverty alleviation.