Do Firms Benefit From Corporate Alleviation? From the Perspective of Signaling Theory and Information Asymmetry

Abstract

Precision is a national strategy for poverty alleviation, is a key step for a country towards achieving common prosperity and socialist modernization, in which not only is the work of the government and the masses, enterprises should also undertake the social responsibility. On the one hand, enterprises participate in the precision for poverty alleviation work to provide funds for poverty alleviation, and provide a way out of poverty for the masses. On the other hand, enterprises can also promote their positive image and obtain government resources through poverty alleviation. Therefore, this paper analyzes the sample data of non-financial listed companies participating in targeted poverty alleviation in the stock market from 2016 to 2020, and discusses the impact of enterprises' participation in poverty alleviation on company stock price fluctuations. The results show that: (1) the participation of enterprises in poverty alleviation will increase the fluctuation of stock price. (2) The participation of enterprises in poverty alleviation will reduce the prediction error of analysts. (3) Information disclosure by enterprises will increase the prediction error of analysts. Research proves that enterprises involved in poverty reduction to the enterprise itself to influence cannot be determined, so the enterprise should combine their own actual situation to decide whether to participate in poverty alleviation, but involved in poverty reduction can reduce analysts forecast error, is helpful for investors to make the right investment decisions, but should be alert to the enterprise of incomplete information disclosure make the analysts' forecast error to the growths.