Research On The Impacat Of Targeted Poverty Alleviation Participation On Corporate Financing Constraints

In recent years,China’s economic level has maintained a stable development situation,but due to the imperfection of the capital market and information asymmetry,financing constraints have become an unavoidable challenge for every enterprise,while private enterprises often face more financing constraints than state-owned enterprises due to the impact of credit discrimination.At the same time,in 2020,China won the battle to get rid of poverty.In the process of getting rid of poverty,private enterprises have made great contributions,and the introduction of a series of government policies also shows that they can provide corresponding help to poverty alleviation enterprises.On this basis,this paper studies the impact and mechanism of private enterprises’ participation in targeted poverty alleviation on their financing constraints.Firstly,through literature reading,this paper combs out three formation mechanisms of financing constraints,that is,the size of enterprise financial flexibility,the strength of credit discrimination and the acquisition of social capital can affect its financing constraints.After that,this paper constructs two theoretical models according to the existing literature,and makes a quantitative analysis of the financial indicators of country garden through the case study method.Finally,it comes to the conclusion that the targeted poverty alleviation behavior of private enterprises can alleviate the financing constraints,and this impact is realized through the signal effect and resource effect.Signal effect refers to that enterprises reduce information asymmetry and enhance corporate reputation through targeted poverty alleviation,so as to alleviate financing constraints.For external investors,normal investment decisions depend on diversified information.The poverty alleviation information disclosed by enterprises in the social responsibility report can supplement the lack of financial information,make investors more fully understand the capital status,operation effect and development ability of enterprises,enhance investors’ trust in enterprises and avoid adverse selection.Moreover,targeted poverty alleviation helps enterprises establish a good image,accumulate reputation capital and moral capital,realize value appreciation and preservation,and then improve the ability of enterprises to obtain financing and alleviate financing constraints.Resource effect refers to that enterprises obtain political resources and market resources through participating in targeted poverty alleviation,thus alleviating financing constraints.The targeted poverty alleviation of private enterprises is completed under the leadership of the government and cooperation with the government.The government has always encouraged this behavior.Targeted poverty alleviation actually realizes the political connection of enterprises.The Chinese government has mastered a series of precious resources needed for the survival and development of enterprises,and has a certain voice in banks and capital markets.Political connection can bring more financing,subsidies,exemptions and other help to enterprises and reduce financing constraints.In addition,targeted poverty alleviation caters to the ardent expectations of the market and Society for enterprises,makes the relationship between enterprises and stakeholders closer,enhances the ability of enterprises to obtain market resources,and also has a positive effect on financing constraints..This paper uses the real data of the case company to prove that enterprises’ participation in targeted poverty alleviation can effectively alleviate the financing constraints,which provides an important way for enterprises to solve their financing difficulties;For the society,it can encourage more enterprises to fulfill their social responsibilities and promote the balanced allocation of market resources;For the country,it provides case data for the successful experience of poverty alleviation.Although China has achieved comprehensive poverty alleviation,the phenomenon of uneven development in various regions still exists.I hope that the writing of this paper can provide theoretical reference for government enterprise cooperation to realize the common prosperity of the country.