Can the Participation of Party Organizations in the Corporate Governance of Chinese State-Owned Enterprises Restrain Inefficient Investment? An Empirical Study Based on a Time-Varying DID Model

Yue Cao

2022

Abstract

This paper uses A-share state-owned listed enterprises as the research object from 2010 to 2020 and develops a time-varying difference-in-differences (time-varying DID) model to test the relationship between party organization participation in state-owned enterprise (SOE) corporate governance and inefficient investment. The results show that party organization participation in SOE corporate governance significantly inhibits inefficient investment behavior. A further analysis based on SOE heterogeneity reveals that the inhibitory effect of party organization participation in corporate governance on inefficient investment is more pronounced in commercial SOEs and local SOEs. The policy effect of party organization participation in corporate governance is mainly achieved by reducing agency costs by increasing total asset turnover, thus discouraging inefficient investment. This paper provides important policy implications for China to further promote the participation of party organizations in the corporate governance of SOEs.

Paper Citation

in Harvard Style

Cao Y. (2022). Can the Participation of Party Organizations in the Corporate Governance of Chinese State-Owned Enterprises Restrain Inefficient Investment? An Empirical Study Based on a Time-Varying DID Model. In Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI; ISBN 978-989-758-620-0, SciTePress, pages 538-544. DOI: 10.5220/0011751600003607

in Bibtex Style

@conference{icpdi22,
author={Yue Cao},
title={Can the Participation of Party Organizations in the Corporate Governance of Chinese State-Owned Enterprises Restrain Inefficient Investment? An Empirical Study Based on a Time-Varying DID Model},
booktitle={Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI},
year={2022},
pages={538-544},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011751600003607},
isbn={978-989-758-620-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI
TI - Can the Participation of Party Organizations in the Corporate Governance of Chinese State-Owned Enterprises Restrain Inefficient Investment? An Empirical Study Based on a Time-Varying DID Model
SN - 978-989-758-620-0
AU - Cao Y.
PY - 2022
SP - 538
EP - 544
DO - 10.5220/0011751600003607
PB - SciTePress