The Influence Of Employee Participation On The Financial Performance Of The Enterprises

Since The 19 th National Congress of CPC,the main contradiction of our society has changed radically.In the new era,employees have a higher pursuit of democracy.However,the Democratic situation of Chinese enterprises is not optimistic,and the problem of labor relations is still grim.Employee's direct participation and indirect participation is an important form of democratic management in enterprises,which is of great practical significance for building a harmonious society in China.Based on the literature review,it is found that the influence of employees' direct participation and indirect participation on corporate financial performance is studied separately in the past.However,the employees' direct participation and indirect participation usually coexist in the enterprise practice.The existing literature does not study both of them at the same time,and it also fails to verify whether the employees' direct participation and indirect participation are complementary or conflicting with each other.At the same time,whether the effect of employee participation in different types of enterprises is different has not been verified.Based on the shortcomings of the existing research,the following research questions are put forward:(1)In the new era,what are the characteristics of employees' participation in China's enterprises?(2)Can employee participation improve corporate financial performance?(3)Whether employees' direct participation and indirect participation are complementary or conflicting with each other?(4)Is there any difference in employee participation between different types of enterprises?Following these ideas,based on the theories of strategic human resource management,to measure the direct and indirect participation of employees this paper uses content analysis to encode 3030 social responsibility reports and annual reports of 303 State-owned listed companies during the year of 2012-2016.By using Eviews9.0 and other software,we applied descriptive analysis,correlation analysis,multiple linear regression analysis,interaction effect analysis and coefficientdifference analysis to test hypotheses.The empirical study found that the level of employee participation in Chinese enterprises is unbalanced;employees' direct participation and indirect participation have a significant positive impact on the corporate financial performance;there is a significant complementary effect between the two forms of participation;moreover,the effect of employee participation is different in different types of enterprises.