Research On The Influence Of The Party Committee's Participation In Corporate Governance On The Level Of Corporate Governance And Corporate Performance

In China's state-owned enterprise,the participation of the Communist Party of China is a major feature in the corporate governance model.There is inevitably a contradiction between strengthening party leadership to ensure the correct political direction and guaranteeing the preservation and appreciation of state-owned assets.It is a real need to analysis the influence of the party committee's participation on corporate governance and corporate performance,and clarify the role of the party committee in corporate governance in the current state-owned enterprise reform.This paper sorts out the relevant research on the participation of party committee,corporate performance and the role of the party committee.Secondly,we select 401 state-owned enterprise from A-share listed companies as the research object,and study the influence of the party committee's participation on corporate governance and corporate performance.It was found that the Party Committee's participation and corporate governance has an inverted U-shaped relationship.The higher or lower "two-way access" of the Party committee is not conducive to the improvement of corporate governance;in addition,the performance of the company is reduced as the party committee participates of corporate governance in the improvement.Thirdly,this paper conducts a case study on the role of the party committee.It is found that the participation of the party committee will have an impact on its role and further influence on the company's governance level and corporate performance.Finally,this paper puts forward some suggestions for improving the participation of state-owned enterprise party committees in corporate governance: clarifying the specific powers of party committee to participate in corporate governance in the "Company Law";Clearing a moderate level of "two-way entry and cross-employment" among party committee,board of directors,board of supervisors and management;for members who enter the party committee and the board of directors through the "two-way entry" system,they must adhere to the dual evaluation system combining "cadre evaluation" and "economic evaluation".