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Participation Of Party Organizations In Private Enterprises In Governance,Internal Control And Earnings Quality

Posted on:2021-02-18Degree:DoctorType:Dissertation
Country:ChinaCandidate:S L SunFull Text:PDF
GTID:1366330605959512Subject:Accounting
Abstract/Summary:PDF Full Text Request
Since the reform and opening up,the private economy,as an important force to promote China's economic development,has played a pivotal role in maintaining China's rapid economic growth,providing jobs and paying taxes.At the same time,with the continuous growth of China 's private economic strength and the improvement of its internal governance structure,the effect of private enterprises participating in corporate governance has gradually emerged,and many private enterprises have begun to “wear red hats” and start a wave of party organization Among them,the most typical is that many well-known private enterprises such as Xiaomi and LeTV announced the establishment of party committees.Based on this,the participation of party organizations in the governance of private enterprises is also an important way for party organizations to play a governance role(He and ma,2018;Li and Zhang,2018).It is of theoretical and practical significance to study the economic consequences of party organizations of private enterprises participating in corporate governance.At present,domestic scholars mainly study the participation of party organizations in private enterprises in corporate governance from the following aspects: On the one hand,in terms of motivation,private enterprises obtain resources such as information policies and business legitimacy by establishing grass-roots party organizations to meet The needs of the company's business development.On the other hand,in terms of business management,the party organizations of private enterprises can promote social responsibilities,safeguard employees' rights and interests,and establish harmonious labor-management relations.It can be seen that both the practical and academic circles focus on the related issues of state-owned enterprise party organizations.Relatively little research has been done on party organizations of private enterprises.Based on the perspective of earnings quality,this article examines the participation of private enterprise governance.Economic consequences.Earnings information,as the main part of information disclosure of listed companies,is the most direct basis for investors to make decisions.The quality of earnings information will affect the decisions of external investors,and then affect the efficiency of resource allocation in the capital market.Therefore,how to improve the earnings quality of listed companies is the focus of both the theoretical and practical circles.This article reviews the development status and historical evolution of the party organizations in China's private enterprises through relevant literature and theoretical review,and selects three dimensions of earnings management,financial restatement,and timeliness of earnings information disclosure.The i mpact of quality.At present,from "Lantian shares" and "Yinguangxia" to "Green Land" and "Wanfushengke",financial fraud incidents have occurred frequently.This series of incidents has exposed many problems in the operation and governance of private listed companies in China.As an effective internal mechanism,internal control can often play a governance role in the reliability of earnings information,and the construction of internal control in enterprises has received great attention.Therefore,clarifying the relationship between internal control and the quality of earnings is conducive to effectively exerting the governance role of the party organization and helps to promote the effective combination of the two governance mechanisms.The relationship between the quality of internal control and the quality of earnings.The main research conclusions of this paper are summarized as follows:First,private enterprise party organizations participate in corporate governance and earnings management.First,this article finds that the participation of private party organizations in corporate governance is significantly negatively related to the level of corporate earnings management,indicating that the participation of private party organizations in corporate governance has a significant inhibitory effect on corporate earnings management behavior,mainly due to the optimization of the company's internal governance structure and Improved resource acquisition capabilities.Secondly,combining with the important internal governance mechanism of internal control,this paper finds that the participation of private party organizations in corporate governance has a significant inhibitory effect on corporate earnings management behavior.It exists in low-quality internal control enterprises,and in high-quality internal control.Does not exist in the business.This shows that the effective operation of internal control plays a supervisory role in all aspects of business operations and reasonably guarantees the normal operation of the enterprise accounting information system,which is highly consistent with the role and objectives of party organizations in private enterprises,and thus forms an alternative relationship..Finally,in further research,the governance role of party organizations in private enterprises is tested from three perspectives.First,this article finds that after the private enterprise party organization participates in corporate governance,the company's true earnings management has declined significantly,indicating that the private enterprise party organization can not only restrict the opportunistic behavior of the manager's accounting policy choices,but also restrict the company's actual operation The activities of earnings manipulation also played a certain inhibitory effect.Second,considering the impact of other internal and external corporate governance environments,this paper finds that when the external system is more efficient and the independent directors in the board are relatively low,the party organizations of private enterprises participate in corporate governance.The restraining effect on earnings management is more significant,which shows that the role of party organization governance in private enterprises depends on a sound external institutional environment,and as an effective internal governance mechanism,it can make up for the lack of corporate supervision functions.Third,this paper finds After the 18 th National Congress of the Communist Party of China was held,the participation of party organizations of private enterprises in corporate governance had a more significant restraining effect on earnings management,indicating that in consideration of strengthening the party's construction,the party organization's role of guidance and supervision was stronger.Second,the participation of private enterprise party organizations in corporate governance and financial restatement.This article finds that the participation of private enterprise party organizations in corporate governance is significantly negatively related to the probability of corporate financial restatement,indicating that the participation of private party organizations in corporate governance can standardize and supervise the company's financial information system,and unintentionally or intentionally misrepresent management.Play a restraining role,so that financial restatement of this radical financial decision is more robust and reduces the probability of its occurrence.Secondly,considering the internal governance mechanism of internal control quality,this paper finds that under the condition of low internal control quality,the effect of the party organization of private enterprises participating in corporate governance to suppress financial restatement is more significant,but not under the circumstances of high internal control Significantly.This shows that high-quality internal control reasonably guarantees the normal operation of the enterprise accounting information system,regulates and supervises the manager's accounting treatment behavior,and this is highly consistent with the role and goals played by the party organizations in private enterprises,and the two form a unified Alternative relationship.Finally,in the further research of this paper,considering the impact of other internal and external corporate governance environments,this paper finds that when the external system is more efficient and the independent directors in the board of directors are relatively low,the participation of private party organizations in corporate governance reduces the probability of financial restatements It is even more significant,which shows that the role of party organization governance in private enterprises requires the external perfect institutional environment as a guarantee,at the same time it can make up for the lack of corporate supervision functions and improve the company's governance mechanism.This article also finds that after the 18 th National Congress of the Communist Party of China was convened,the Party Central Committee highly advocated strengthening the party's construction,which promoted the party's organizational governance role to be stronger,and the participation of private enterprise party organizations in corporate governance to inhibit financial restatement stronger.Third,the participation of private party organizations in corporate governance and timely disclosure of earnings information.This paper finds that there is a significant negative correlation between the party participation in the governance of private enterprises and the annual financial report,which means that the party organization's participation in corporate governance has a certain role in regulating and supervising information disclosure,which promotes the time lag in annual financial reporting.The improvement has further improved the timeliness of earnings information disclosure.And in high-quality internally-controlled listed companies,the participation of private party organizations in corporate governance improves the timeliness of earnings information disclosure,indicating that party organizations can make up for the functional deficiencies of corporate internal control.In addition,in further analysis,this article combines internal The impact of external corporate governance mechanisms,and found that in listed companies with high external system efficiency and a large proportion of independent directors,the effect of private enterprise party organizations participating in corporate governance to i mprove the timeliness of earnings information disclosure is more significant.This means that from the perspective of external mechanisms,efficient institutional efficiency is a necessary condition for party organizations to play a governance role.From t he internal mechanism,the participation of private enterprise party organizations in corporate governance and the advisory and supervisory functions of independent directors create an alternative relationship.Improve corporate governance mechanisms.This article also finds that after the 18 th National Congress of the Communist Party of China was convened,the party organizations of private enterprises participated in corporate governance to improve the timeliness of earnings information disclosure.The research contributions of this paper are mainly reflected in:First of all,it enriched and supplemented the literature on the participation of party organizations in private enterprises in corporate governance,and deepened the understanding of the relationship between party building work and business operations in the Chinese institutional environment.At present,academic circles have made some progress in the study of the combination of political science and management science.Most of the previous literature focused on the influence of political elections and the political background of managers on the micro-behavior of enterprises;and the economic effect on party organizations is more Mostly stay in qualitative analysis,and generally pay attention to whether the party organization plays a governance role in state-owned enterprises,and ignore the research on the party organization governance role of private enterprises.The number and degree of party organizations embedded in private enterprises are difficult to compare with state-owned enterprises,and due to the lack of a clear theoretical system for party building in private enterprises,the corporate governance effects of party organizations in private enterprises remain at the level of theoretical exploration and paradigm summary.The empirical literature is scarce.Therefore,this article takes private listed companies as the main research body and explores the corporate governance mechanism of party organizations.It has important theoretical significance,and provides a more detailed path for grassroots party organizations in non-public ownership economies to influence company value.Secondly,it enriches and expands the research results of factors affecting earnings quality.At present,research on the factors affecting earnings quality is relatively mature.Some studies have examined the impact of internal governance factors such as the company's equity structure,board characteristics,and executive personal characteristics on earnings quality.This study combines the special institutional background of our country to explore the impact of the participation of party organizations in the management of private enterprises on the corporate governance mechanism with party characteristics on the company's earnings management behavior,financial restatement behavior,and the timeliness of earnings information disclosure.The quality and improvement of management efficiency provide a realistic basis,and strive to provide a feasible solution for private enterprises to solve the difficulties and obstacles encountered in the current transformation process.Finally,from a practical point of view,the research in this paper has some practical guiding significance and policy implications.When private party organizations participate in corporate governance,they face conflicts between the party's construction goals and the company's operating goals,the existence of discreteness between the party organization and the main body of the company,insufficient organizational cohesion,and lack of institutional guarantees.Therefore,many scholars worry To what extent can party organizations play a practical role.At present,there is only a small amount of literature discussing the role of party organizations of private enterprises in corporate governance from the perspectives of audit opinions and worker welfare.This article reveals the role of party organizations of private enterprises in corporate governance in terms of accounting information from a new perspective of earnings quality.The formed governance effect provides empirical evidence for the participation of private enterprise party organizations in corporate governance,helps to correctly understand the role and positioning of party organizations in private enterprises,and provides a powerful new clue for further improving the party building work of private enterprises.
Keywords/Search Tags:party organization of private enterprise, corporate governance, earnings management, financial restatement, timeliness of information disclosure
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