An Empirical Study On The Impact Of Party Organizations’ Participation In Corporate Governance On State-owned Enterprise Investment Activities

It is a significant characteristic and unique advantage of state-owned enterprises in China that Party organizations participate in corporate governance and integrate the party’s leadership into all aspects of corporate governance.It is important to studythe influence of Party organizations’ participation in corporate governance on the mechanism and performance of investment behavior,which can helip the state-owned economy play a leading role in our economic system.In detail,it is conducive to improve the ability and level of Party organizations to participate in corporate governance of state-owned enterprises in the new era,provide theoretical and practical empirical evidence for the innovation and transformation of Party building work in state-owned enterprises,provide research ideas for solving or preventing the loss of state-owned assets,and help state-owned enterprises to identify investment opportunities,reduce inefficient investment and maintain the steady development of enterprise.Based on the achievements of theoretical research and practice in recent years,such as the reform process of state-owned enterprises,the participation of Party organizations in corporate governance,enterprise investment behavior and investment efficiency,this paper creatively discusses the mechanism and influence path of Party organizations’ participation in corporate governance of state-owned enterprises from the perspective of the integration of Party building and enterprise management.First of all,on the basis of literature research,this paper combs out the logical structure of state-owned enterprises’ Party organizations’ participation in corporate governance and corporate investment activities,and then puts forward a series of research hypotheses.Secondly,this paper selects 1136 A-share state-owned enterprises traded in Shenzhen Stock Exchange and Shanghai Stock Exchange from 2008 to the end of June 2020 as the empirical analysis data source,and uses SPSS17.0 for statistical analysis.Through descriptive statistics,correlation analysis,principal regression analysis and robustness test,it is verified that the participation of Party organizations in corporate governance can effectively reduce the impact of overconfidence of executives It is concluded that the participation of Party organizations in corporate governance is beneficial to the investment performance of enterprises.Finally,considering the possibility that the enterprise managers will not act in order to avoid the political risk under the participation of the party organization,the paper further analyzes the influence of the enterprise manager’s "Inaction" motivation on the enterprise’s investment decision-making.The innovation of this paper lies in the following aspects: firstly,the paper combs in detail the theoretical development and practical process of the party’s participation in the corporate governance of state-owned enterprises since the founding of the People’s Republic of China,which provides a more grand perspective and clear context for the study of the mechanism of the Party’s participation in the corporate governance of state-owned enterprises and the influence of enterprise’s investment activities;secondly,in terms of research methods,it is different from the existing research,mainly focusing on the theory and policy interpretation,this paper sets up an analysis model to carry out empirical analysis through the selection of data and variables,so that the research process and conclusions are based on accurate data and rigorous argumentation,which greatly enriches the research results of the mechanism and empirical analysis of the party organizations’ participation in the corporate governance of state-owned enterprises;Third,from the perspective of enterprise investment efficiency,this paper links the two elements of Party building and enterprise management,and makes great progress in the system,mechanism,path and method of the integration of the two,hoping to help the party organizations to participate in the governance of state-owned enterprises to release more energy and achieve more satisfactory performance.