Research On The Impact Of Participating In Targeted Poverty Alleviation On Entity Enterprises Financialization

In recent years,China’s industrial structure has been continuously optimized,the economic development has been transformed and upgraded,and the virtual economy has been expanding with the characteristics of high mobility and high income,leading to a trend of "de real to virtual ".On the one hand,entity enterprises are keen on financial investment,which leads to the rising proportion of financial assets in the total assets of enterprises and the shrinking of entity investment;on the other hand,the enterprises’ profits are increasingly dependent on financial investment income,and their dependence on entity investment is declining.The trend of " de real to virtual " is the phenomenon of “financialization of entity enterprises”.Under the background of “de real to virtual”,the influencing factors of entity enterprises financialization have become a hot topic in the academic circle.Corporate social responsibility is one of the important aspects,and participation in targeted poverty alleviation is a new form of corporate social responsibility in the new era.Studies have shown that participating in targeted poverty alleviation can help enterprises obtain financial subsidies,tax incentives and other economic resources,and promote the improvement of enterprise investment efficiency.So whether participating in targeted poverty alleviation can affect the investment behavior of enterprises,and whether it will have an impact on " de real to virtual " of the economy is still worth discussing.This paper intends to response the abovementioned issues by discussing the impact of public companies’ participation in targeted poverty alleviation on the financialization of entity enterprises.In response to the above issues,this paper takes Chinese A-share listed companies from2016 to 2021 as samples.Based on the principal-agent theory,asymmetry information theory and investment substitution theory,this paper uses correlation analysis and multiple regression analysis and other research methods to empirically test the impact of participating in targeted poverty alleviation on financialization of entity enterprise.From the perspective of managerial self-interest,this paper discusses the intermediary mechanism of targeted poverty alleviation and entity enterprise financialization.In addition,in the further analysis,based on the type of targeted poverty alleviation and the structure of financial assets,the heterogeneity analysis is carried out.In view of the fact that the appropriate level of financial support can help enterprises reduce financial risks,and that the over-financing will crowd out the investment of enterprises in innovation and other entities.This paper also analyzes the impact of participating in targeted poverty alleviation on the over-financing of entities.The research shows that:(1)Listed companies’ participation in targeted poverty alleviation will inhibit the financialization of physical enterprises,and managerial selfinterest play a part of intermediary role in it.(2)The participation of industrial targeted poverty alleviation has a more significant inhibitory effect on the financialization of real enterprises.(3)Listed companies participating in targeted poverty alleviation can reduce the amount of long-term financial assets,but has no marked impact on short-term financial assets.(4)In further analysis,it is found that the participation of listed companies in targeted poverty alleviation reduces the excessive rather than moderate financialization of real enterprises,and can play a role in optimizing resource allocation.The innovation points of this paper are as follows:(1)Integrating national macro level strategies and micro enterprise behavior into a unified research framework,this study expands the relevant research on the factors influencing the financialization of physical enterprises from the perspective of targeted poverty alleviation;(2)Expanding the research on the economic consequences of listed companies fulfilling social responsibility from the perspective of corporate financial investment;(3)The heterogeneity analysis is carried out from the types of targeted poverty alleviation and the holding structure of corporate financial assets,deepening the research content of listed companies’ participation in targeted poverty alleviation and corporate finance.In addition,the conclusions of this paper provide reference for other countries in the world that need to reduce poverty to formulate comprehensive poverty alleviation policy decisions,and also provide a basis for China’s policy formulation,such as consolidating the achievements of poverty alleviation,preventing poverty return,achieving rural revitalization,and pushing forward the virtual economy return to the essence of serving the real economy in the new era.