Political Connection And Targeted Poverty Alleviation

At present,poverty alleviation has achieved phased victory.The government’s overall planning for poverty alleviation is also inseparable from the participation of all sectors of society,especially listed companies.Judging from the current corporate precision poverty alleviation data disclosed by listed companies,the enthusiasm of enterprises to participate in poverty alleviation is not high,and the level of different enterprises varies greatly.Political connections is an important resource for enterprises,which can bring many benefits to enterprises.At the same time,targeted poverty alleviation has a strong “political color”.There may be some correlations in targeted poverty alleviation.From the perspective of the nature of corporate property rights,this paper explores the relationship between political connections and corporate targeted poverty alleviation behavior,and clarifies the motives and reasons of corporate targeted poverty alleviation behaviors of different property rights by studying the mitigation effect of targeted poverty alleviation on financing constraints.This paper selects the unbalanced panel data of A-share listed companies from2016 to 2018.The study found that:(1)Compared with companies without political connections,companies with political connections will participate more actively in poverty alleviation and have higher investment.(2)The poverty alleviation of enterprises can alleviate financing constraints.For private enterprises,the tendency of poverty alleviation can reduce financing constraints,but the increase in poverty alleviation investment has no effect on financing constraints;the participation of state-owned enterprises in poverty alleviation has no significant impact on alleviating financing constraints,but raising the level of poverty alleviation can alleviate financing constraints.(3)Compared with non-political private enterprises,the participation of politically connected private enterprises in poverty alleviation has a greater effect on alleviating financing constraints.(4)Further research found that companies can significantly improve company performance by participating in targeted poverty alleviation,and it also has a positive effect on the level of corporate governance;in small private enterprises in traditional industries,The positive correlation between political connections and targeted poverty alleviation is more significant.The research results show that state-owned enterprises and private enterprises may have different motivations and reasons for participating in targeted poverty alleviation: for private enterprises with political connections,active participation in poverty alleviation can significantly alleviate the financing constraints they face,while the enthusiasm of private enterprises is only reflected in the level of "participation",Because more investment will not bring more "benefits." For state-owned enterprises,they participate in targeted poverty alleviation out of "sincerity." Regardless of whether they are politically connected or not,state-owned enterprises will participate in poverty alleviation.