Proceedings of the 2022 6th International Seminar on Education, Management and Social Sciences (ISEMSS 2022)

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Will Companies’ Participation in Targeted Poverty Alleviation Affect Their Default Risk?

Authors
Guihao Zhuang1, *, Xinyu Li2, Xiaowen Li3
1School of Economics and Management, South China Normal University, Guangzhou, China
2School of Management Science and Engineering, Central University of Finance and Economics, Beijing, China
3School of Finance, Jiangxi University of Finance and Economics, Nanchang, China
*Corresponding author. Email: guihaozhuang@foxmail.com
Corresponding Author
Guihao Zhuang
Available Online 29 December 2022.
DOI
10.2991/978-2-494069-31-2_416How to use a DOI?
Keywords
targeted poverty alleviation; default risk; merton; government subsidies
Abstract

Targeted poverty alleviation is a national strategy. Targeted poverty alleviation for enterprises is important for winning the battle against poverty. This article uses the non-financial listed companies participating in targeted poverty alleviation in the 2016–2020 A-share market as a sample to study the impact of targeted poverty alleviation participation levels on corporate default risks. The study found that this participation in targeted poverty alleviation can bring more investment opportunities and financing convenience to companies, and ease external financing constraints through reputation effects, thereby reducing the company's default risk. This paper studies the impact and mechanism of corporate targeted poverty alleviation on corporate default risk. Empirical evidence shows that companies participating in targeted poverty alleviation will receive government policy preferences, including fiscal and financial policies, which will help reduce corporate default risks. A “win-win” result of social responsibility and risk aversion.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 6th International Seminar on Education, Management and Social Sciences (ISEMSS 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
29 December 2022
ISBN
978-2-494069-31-2
ISSN
2352-5398
DOI
10.2991/978-2-494069-31-2_416How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Guihao Zhuang
AU  - Xinyu Li
AU  - Xiaowen Li
PY  - 2022
DA  - 2022/12/29
TI  - Will Companies’ Participation in Targeted Poverty Alleviation Affect Their Default Risk?
BT  - Proceedings of the 2022 6th International Seminar on Education, Management and Social Sciences (ISEMSS 2022)
PB  - Atlantis Press
SP  - 3549
EP  - 3563
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-31-2_416
DO  - 10.2991/978-2-494069-31-2_416
ID  - Zhuang2022
ER  -