Will Companies’ Participation in Targeted Poverty Alleviation Affect Their Default Risk?
- 10.2991/978-2-494069-31-2_416How to use a DOI?
- targeted poverty alleviation; default risk; merton; government subsidies
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.
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Cite this article
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 -