Abstract: Government and market are the essential entities in constructing the national governance system and achieving the modernization of governance capacity. To straighten out the relationship between the two can better play the role of governance, which has become a research topic attracting the scholars' attention. Taking the implementation of the targeted poverty alleviation policy as the research background, this paper conducts an empirical test of the impact of the listed companies' participation in the targeted poverty alleviation on their corporate risk levels. The findings show that the listed companies as market governance units participating in targeted poverty alleviation led by the government can significantly reduce their risk levels and that enhancing their corporate reputation is an important channel leading to the above-mentioned effects. The results of further study suggest that this role of risk restraining is more significant in the enterprises of state-owned, with less financing constraints or with poor internal quality control. The above results provide empirical evidences for the effectiveness of the cooperative governance mode that the government encourages companies to participate in, suggesting that in the implementation of targeted poverty alleviation, the interconnected governance between the successful government and the efficient market not only conforms to the self-interests of enterprises, but also improves the efficiency of resource allocation for poverty alleviation. Therefore, this study has important enlightenment for the listed companies to summarize their experience of participating in targeted poverty alleviation and for the social powers to participate in the rural revitalization and other national strategies.

Key words: targeted poverty alleviation, governance capacity, corporate risks