Participation in Targeted Poverty Alleviation and Enterprise Innovation Investment: Analysis of the Mediating Effect Test Model Based on Financing Constraints

Abstract

In China, enterprises participating in targeted poverty alleviation can be provided with a strategic resource to enhance their ultimate value creation ability and directly win reputation and obtain sustainable competitive advantages, thus enhancing their innovation ability. In this study, the influence and mechanism of the participation in targeted poverty alleviation on enterprise innovation investment are empirically examined based on financing constraints with the data of nonfinancial listed companies in Shanghai and Shenzhen from 2012 to 2019 as the object. The research suggests that enterprises taking the initiative to participate in targeted poverty alleviation can first have increased innovation investment and especially enhanced exploratory innovation ability. Second, enterprises’ participation in targeted poverty alleviation can reduce financing constraints of enterprises’ innovation, improve their resource allocation efficiency, and stimulate their innovation vitality primarily through the influence of resource, reputation, and information. This study enriches the theoretical research on the economic consequences of targeted poverty alleviation and provides a reference for guiding enterprises in practice to fulfill social responsibilities to promote enterprises’ innovation vigor and boost their high-quality development.