Research On The Impact Of Changes In Local Officials On Enterprises’ Investment In Targeted Poverty Alleviation

In order to ensure the effective implementation of poverty alleviation work.The CPC Central Committee has issued a responsibility system for poverty alleviation,requiring regional governors to play a "leader role" in poverty alleviation work and assume responsibility.As an important strategic decision at the national level,the targeted poverty alleviation policy is more systematic,highly focused and institutionally driven than general corporate social responsibility.Under the poverty alleviation model with government participation,local governments have a significant impact on targeted poverty alleviation.For enterprises,the change of local officials,means the transfer of political rights and the reallocation of resources.Existing studies have shown that companies will selectively undertake corporate social responsibility when faced with the uncertainty caused by the change of local officials,but there is no clear conclusion on how to influence the undertaking of corporate social public responsibility.Therefore,this paper focuses on the impact of local officials on the targeted poverty alleviation segment of corporate social responsibility and its mechanism of action.This paper takes A-share listed companies in Shenzhen and Shanghai from 2016 to 2019 as the research object,and uses the method of OLS regression to investigate the relationship between the change of local municipal party committee secretaries and the targeted poverty alleviation behavior of enterprises.The results show that:(1)The change of local officials will lead to a decrease in the targeted poverty alleviation expenditure of enterprises.(2)Compared with the "charitable" poverty alleviation method,the negative impact of the change of local officials on the "investment-based" poverty alleviation is more obvious.(3)Compared with officials without grass-roots experience,the grass-roots experience of new officials will weaken the negative impact of official changes on enterprises’ targeted poverty alleviation.(4)Based on the perspective of government resources,the partial mediation effect of government subsidies on the change of local officials and the investment of enterprises in targeted poverty alleviation is tested.(5)From the external environmental factors,the relationship between government and enterprises and the internal factors of the enterprise,the management ability group test the moderating effect of the official change and the enterprise’s targeted poverty alleviation.The study found that compared with non-politically connected enterprises and private enterprises,enterprises with political connections and close government-enterprise relations,such as state-owned enterprises,were more affected.At the same time,the political impact of the change of local officials will strengthen the preventive motivation of high-capacity management,making them more inclined to "charitable" poverty alleviation with greater short-term reputation value,while reducing the investment of "investment-based" poverty alleviation.In addition,we measure the intensity of political shocks from the characteristics of outgoing officials’ changes and the sources of new leaders,and measure the policy continuity through the length of officials ’tenure.Policy continuity will significantly improve the level of enterprises ’participation in “investment-based” targeted poverty alleviation.In order to achieve comprehensive poverty alleviation,the Party Central Committee adheres to the importance of the "four no-picking" policy.