The Impact of Poverty Alleviation Policy on the Financing Capability of Companies Related to Agriculture

Abstract

Poverty alleviation policies aim to mobilize all forces including the power of capital market to achieve poverty reduction. While the relationships between these policies and agriculture-related listed companies are not recognized. By grading poverty alleviation policies of 20 provinces and using generalized least-squares regression of panel data, this paper discusses the influence of policy intensity on equity, debt and endogenous financing ability of agriculture-related listed companies. The results show that agriculture-related listed companies in regions with strong policy intensity have stronger equity financing capability and endogenous financing capability. The implication is that the governments of poverty-stricken areas should set out more specific policy, helping local enterprises to improve financing capacity, and then promote these listed companies to benefit from the power of capital market to shake off poverty.