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Poverty mitigation and anti-corruption campaigns: evidence from Chinese cities.
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- Author(s): Cheng, Maoyong; Meng, Yu; Jin, Justin; Nainar, Khalid
- Source:
Journal of the Asia Pacific Economy; Aug2024, Vol. 29 Issue 3, p1313-1343, 31p- Subject Terms:
- Source:
- Additional Information
- Subject Terms:
- Abstract: In China, firms actively participate in poverty alleviation to comply with the national policy and to build political connections. Whether firms curry favor with the government by increasing spending on poverty alleviation is an interesting research question under the context of anti-corruption campaigns. Using hand-collected data from the period 2016–2018, we examine how anti-corruption campaigns have influenced corporate poverty alleviation spending at the city level. Our results show that anti-corruption campaigns are positively related to corporate poverty alleviation spending. We further identify two possible channels through which the anti-corruption campaign increases corporate poverty alleviation spending: (1) political connections and (2) stock price crash risk. Finally, we find that the effects of the anti-corruption campaign on corporate poverty alleviation spending are stronger in firms located in cities with lower degrees of marketization, a lower media index, and a higher poverty rate, as well as in firms receiving fewer government subsidies. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Journal of the Asia Pacific Economy is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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