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3418The Party organization embedded in the corporate governance structure and playing the leading core role has become the biggest feature of corporate governance of state-owned enterprises. The research on Party organizations and corporate governance has also become the focus of academic attention, and there have been a series of related research, but the existing research only involves the level of enterprise Party organizations, and the heterogeneity of individual Party members has not been further explored. This paper holds that Party members have very distinct individual characteristics. Party members who have been screened and assessed for a long time have high personal ability and quality, as well as high values and moral standards shaped by long-term Party member self-discipline norms and discipline regulations, which will have a sustained and far-reaching impact on their management style, decision-making standards and behavior choices. Taking the sample of state-owned listed companies from 2013 to 2018 as the research object, this paper analyzes the governance effect of enterprise Party organizations from the perspective of enterprise behavior self-discipline, draws lessons from the perspective of individual self-discipline in psychology, takes enterprise violations and involvement in judicial proceedings as the “reverse” proxy variable of enterprise behavior self-discipline, and empirically analyzes the impact of Party organizations embedded in corporate governance on enterprise behavior self-discipline. The results show that the embedding of Party organizations into corporate governance can promote enterprise behavior to be more self-discipline, which is reflected in the relatively lower possibility of enterprise violations and involvement in judicial proceedings, and this effect is mainly realized by reducing the risk of the enterprise. Further research finds that Party organizations promote enterprise behavior self-discipline not only in mandatory behaviors such as legal compliance (explicit self-discipline), but also in voluntary behaviors such as actively reducing earnings management and providing higher quality accounting information (implicit self-discipline). Institutional environment and industry regulation affect this effect. That is, the weaker the local government intervention and when the enterprise is in non-regulated industries, the greater the role of Party organizations in promoting enterprise behavior self-discipline. Compared with the existing literature, this paper may make two contributions: (1) It provides a new research perspective for the related research of enterprise behavior from the perspective of enterprise self-discipline. The existing research lacks direct discussion on enterprise behavior self-discipline. From the perspective of Party organizations embedded in corporate governance, this paper integrates and runs through the impact of three factors on enterprise behavior self-discipline: external institutional environment, corporate governance at the enterprise level and individual executives, and expands the perspective of enterprise behavior research. (2) It expands and enriches the research on corporate governance with Chinese characteristics represented by Party organizations embedded in corporate governance. This paper confirms that the values and beliefs of enterprise Party organizations and Party members will modify and optimize the behavior of senior executives with the identity of Party committee, show a higher moral standard, and then optimize enterprise behavior. The conclusion of this paper provides direct and internal evidence for the role of Party organizations in embedding corporate governance, and confirms the important value of enterprise Party organizations in improving the corporate governance of China’s state-owned enterprises.
/ Journals / Foreign Economics & Management
Foreign Economics & Management
LiZengquan, Editor-in-Chief
ZhengChunrong, Vice Executive Editor-in-Chief
YinHuifang HeXiaogang LiuJianguo, Vice Editor-in-Chief
The Impact of Party Organization Embeddedness on Enterprise Behavior Self-discipline: Based on the Perspective of Enterprise Risk
Foreign Economics & Management Vol. 43, Issue 12, pp. 19 - 34 (2021) DOI:10.16538/j.cnki.fem.20211115.201
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Cite this article
Wang Yuanfang, Ma Lianfu. The Impact of Party Organization Embeddedness on Enterprise Behavior Self-discipline: Based on the Perspective of Enterprise Risk[J]. Foreign Economics & Management, 2021, 43(12): 19-34.
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