The Impact Of Corporate Participation In Poverty Governance On Financing Constraints In The Context Of Rural Revitalization

In 2020,China completely eradicated absolute poverty and successfully kickstarted the fight against poverty.In the context of continuously promoting the rural revitalisation strategy,China’s poverty alleviation work has focused on achieving outstanding poverty eradication results and tackling relative poverty.Enterprises play an important role in poverty management and the overall implementation of rural revitalisation.The State has been actively guiding and encouraging enterprises to assume social responsibility by participating in poverty governance,and also supporting them to make full use of their technical and financial advantages to drive development to help alleviate poverty.Studies show that by taking an active social responsibility,enterprises can effectively reduce information asymmetries in the market,enhance their reputation and widen their competitive advantage,thereby reducing financing constraints and contributing to long-term sustainable development.However,given the current state of CSR research,few researchers have conducted studies on CSR participation in poverty management,and most existing studies focus on the impact of participation,while empirical studies are scarce.In this paper,we use an empirical test to investigate the incentive effects of firms’ participation in poverty management on their financing from the segment of firms’ financing constraints,which not only has great practical significance to promote firms’ active participation in rural poverty alleviation and link financing constraints,but also has some theoretical significance to enrich research results on firms’ participation in poverty management.The research object of this paper is selected A-share listed enterprises from 2016 to 2020,collected data on enterprises’ participation in poverty management from Cathay Capital(CSMAR),China Research Data Service Platform(CNRDS)and Wind,etc.databases and conducted empirical tests by building a multiple regression model to obtain three conclusions:(1)enterprises’ participation in poverty management has a positive impact on their financial constraint alleviation,and the higher the participation,the higher the impact on financial constraint alleviation;(2)among different equity characteristics,non-state-owned enterprises have a stronger impact on financial constraint alleviation than state-owned enterprises;(3)firms in consumer-sensitive sectors have a greater impact on alleviating their financial constraints than nonconsumer-sensitive firms have a greater impact on alleviating their financial constraints than non-consumer-sensitive firms’ participation in poverty management.The main contribution of this paper is the following: On the one hand,it contributes to research on corporate participation in poverty management and on corporate financial constraints,provides a new perspective on the study of financial constraints of listed companies and helps companies to better understand the synergies between their socially responsible behavior and their development;On the other hand,this paper takes into account the nature of companies’ equity,the nature of the industry,the nature of companies’ equity,the nature of the industry,the nature of companies’ equity,the nature of companies’ equity,the nature of the industry,and other factors in an in-depth study;and,analyzing the impact of enterprises’ poverty management behavior under the influence of various factors,it will provide new ideas for the government to design more comprehensive and effective policies to help the poor at the capital market level,as well as to better guide enterprises to play a role in the comprehensive implementation of the rural revitalization strategy.