TITLE:
The Influence of Party Organization’s Participation in External Governance on the Innovation of China’s State-Owned Enterprises
AUTHORS:
Yue Wang
KEYWORDS:
Party Organization, Corporate Governance, State-Owned Enterprise
JOURNAL NAME:
Open Journal of Political Science,
Vol.10 No.2,
April
30,
2020
ABSTRACT: Under
unique institutional background, the governance of China’s state-owned enterprise (SOE) has a distinctive
characteristic. The paper aims at researching the impact of Chinese Communist
Party’s participation in external governance on the innovation of China’s
state-owned enterprises. Since the 18th National Congress of the
Communist Party of China, the Central Commission for Discipline Inspection
began to inspect the central state-owned enterprises. The paper uses the
political event as natural experiment to research the impact of inspections on
corporate innovation, which is an important external mechanism of corporate
governance. Through the test of multi-period difference-to-differences (DID)
model, the empirical results show that the inspection of the Central Commission
for Discipline Inspection promoted the innovation of central state-owned
enterprises.