Targeted Poverty Alleviation Initiatives, Corporate Governance Structures and Corporate Value: Evidence from China

Abstract

This study examines the impact of targeted poverty alleviation (TPA) activities on firm value and how this relationship is influenced by corporate governance factors using data from Chinese listed firms from 2016 to 2019. The results under fixed effect estimation with robust standard errors show that firm value is positively affected by both corporate governance and TPA activities, and the integration of governance structure and social responsibility performance can enhance firm value. Internal corporate governance has a significant impact on firm TPA activities and can boost firm value. The study also highlights the importance of the fraction of independent directors to management, the board size, and ownership concentration in moderating the relationship between TPA activities and firm value. The theoretical contribution of this paper lies in its identification of the synergistic effects of corporate governance and social responsibility performance on firm value in the context of poverty alleviation. These findings have implications for firms aiming for long-term growth through social contribution and policymakers seeking to devise effective policies to foster optimal involvement in poverty reduction.