Research On The Political Connections Of Listed Companies And Investment In Targeted Poverty Alleviation

In 2021,at the vital moment of the centenary of the Communist Party of China,we have achieved the comprehensive victory in fighting against poverty.In the new stage of development,solving the relative poverty problem and reducing urban-rural disparity is still the main theme.For a long time,anti-poverty will be one of the main social responsibilities for the listed companies in China.In this case,studying whether politically connected senior executives can guide companies to higher participation in anti-poverty has great significance,especially in promoting the all-encompassing campaign against poverty.Based on such circumstances,this article takes targeted poverty alleviation into the theoretical framework of social responsibility,tidies the data disclosed by Shanghai and Shenzhen’s A-share listed companies from 2016 to 2020.By establishing a multiple regression model,this article explores the relationship between political connections and targeted poverty alleviation,and whether it will be affected by industries,regions and property rights.In addition,it further explores how the way works and put forward policy recommendations.This article draws several conclusions:（1）Political connections have a positive correlation effect on companies’ targeted poverty alleviation behavior and scale.Companies with political connections not only more have more willing to engage in fighting poverty,but also invest more money and goods.Whether they are politically connected is more vital than the relevant level.（2）The impact of political connections on targeted poverty alleviation shows distinction in different industries,regions,and property rights:listed companies in public and industrial industries are more notable than other industries;listed companies in west and east show more evidence than those in central China;state-owned and private enterprises have a relatively higher investment scale than foreign-funded ones.（3）Political connections affect targeted poverty alleviation in the way of corporate governance,which means increase investment in targeted poverty alleviation by building efficient corporate governance.