From responsibility to resilience: how targeted poverty alleviation strengthens firms

Using a comprehensive dataset of Chinese listed companies ranging from 2011 to 2020, this study examines the impact of firms’ participation in targeted poverty alleviation on firm resilience. Based on the Difference in Difference (DiD) model, this study provides empirical evidence that targeted poverty alleviation initiatives significantly enhance firm resilience. Specifically, the mechanisms driving these effects include lowering financial constraints, increasing employee productivity, and enhancing corporate reputation. Robustness checks, including parallel trend analysis and placebo trials, confirmed the reliability of these results. This study contributes to the growing CSR literature by highlighting the strategic value of CSR activities in building resilience and provides important practical implications for policymakers and business practitioners aiming to promote stable and sustainable economic growth.