Cumulative Effect, Targeted Poverty Alleviation, and Firm Value: Evidence from China

Li Xiong, Xiaoliang Long and Zhaoran Xu
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Li Xiong: School of Management, Shanghai University, Shanghai 200444, China
Xiaoliang Long: School of Management, Shanghai University, Shanghai 200444, China
Zhaoran Xu: School of Economics and Management, Shanghai Polytechnic University, Shanghai 201209, China

Sustainability, 2022, vol. 14, issue 15, 1-17

Abstract: This paper studies the influence of the annual cumulative earnings of Chinese listed TPA (targeted poverty alleviation) companies before 2004 on the companies’ value using data from 2012 to 2019, measures the long-term earnings persistence of these companies with the variable of the cumulative earnings averaged by the market price of each company at the current year’s end, and obtains a model of the company’s value combined with each company’s earnings persistence and the long-term competitive strength of its products. The cumulative data from 2004 to 2012, 2005 to 2013…, and 2011 to 2019 provide the data used for regression from 2012 to 2019. The TPA companies’ value is affected by long-term cumulative net profits and long-term competitive advantage. The higher the company’s accumulated net profit, the longer the duration of the long-term competitive advantage, the more stable the company’s value increase, and the higher the quality of the value increase.

Keywords: TPA companies; cumulative earnings; earnings persistence; long-term product’s competitive strength (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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