Research On Party Organization Governance And Information Disclosure Quality In Private Enterprises

The capital market is an information market,and the quality of information disclosure directly affects the efficiency of resource allocation in the capital market.However,China’s information disclosure situation is not optimistic.Information disclosure problems emerge in an endless stream.Regarding the information disclosure system,China’s regulatory authorities have made many disclosure systems and punishment measures.However,establishing and improving these systems can only provide technical support for improving the quality of information disclosure.In order to fundamentally solve the problem of information disclosure in the capital market,an effective internal corporate governance mechanism is the key.As a crucial internal governance mechanism with Chinese characteristics,Party organization governance has a significant impact on enterprises’ financial behavior and decision-making.Throughout the relevant literature at home and abroad,scholars have conducted much research on the economic consequences of Party organization governance in private enterprises and achieved rich results.However,the research on the relationship between Party organization governance and private enterprise information disclosure quality still needs to be further expanded and deepened.This paper samples A-share listed companies in Shanghai and Shenzhen from 2007 to 2020.Based on embedding theory,high-level echelon theory,resource dependence theory,and reputation theory,based on digital information and text information,it follows the transmission process of "compilation-disclosure-interpretation" of information.A comprehensive and systematic analysis and discussion of the private enterprise Party organization governance and the quality of information disclosure of the impact and action path.The content summarized as follows:Chapter 1,Introduction.Systematically introduces the research background and significance,sorts out the specific research content and technical route,research ideas,and methods,and points out the innovation.Chapter 2,Literature review.This part focuses on sorting out and summarizing the core concepts and related literature involved in this paper and conducting unified induction,summary,and comment on relevant literature.By reviewing relevant literature,we can understand the latest research trends and existing research space to provide solid literature support for subsequent research.Chapter 3,Institutional background.Theoretical basis and mechanism analysis.Firstly,combs out the institutional background of Party organization governance.Secondly,theoretical analysis is carried out based on embedding theory,high-level echelon theory,resource dependence theory,and reputation theory.Finally,analyzes the influence mechanism of Party organization governance on corporate information disclosure quality.Chapter 4,Examine the relationship between Party organization governance and financial restatement in private enterprises.The empirical findings are as follows:(1)Party organization governance has a significant inhibitory effect on the financial restatement of private enterprises.When the Party organization enters the board of directors,it can significantly inhibit the company’s financial restatement.However,when the Party organization enters the board of management and the board of supervisors,it does not significantly inhibit the company’s financial restatement.(2)The function path test shows that the Party organization governance can effectively reduce enterprises’ financial restatement by strengthening the company’s internal supervision and relieving the financing pressure.(3)The inhibition effect of Party organization governance on corporate financial restatement will also be affected by external governance mechanisms and institutional background.When the company is faced with a high degree of industry competition,non-industry regulation,a better legal environment of registration place,and less media attention,the inhibition effect of Party organization governance on corporate financial restatement are more pronounced.(4)The main conclusions remain unchanged after a series of robustness tests.Chapter 5,Examine the relationship between Party organization governance of private enterprises and information disclosure violation.The empirical findings are as follows:(1)Party organization governance in private enterprises can significantly inhibit corporate information disclosure violations.The Party organization can significantly inhibit the company’s information disclosure violations when entering the board of directors and management.In contrast,the Party organization can not significantly inhibit information disclosure violations when entering the board of supervisors.(2)The function path test found that the Party organization governance can effectively reduce the violation of information disclosure by strengthening the company’s internal supervision and reducing the company’s risk.(3)The inhibition effect of Party organization governance on corporate information disclosure violations will also be affected by external governance mechanisms and institutional background.When the company is faced with a high degree of industry competition,non-industry regulation,a better legal environment of registration place,and less attention from analysts,the Party organization governance of private enterprises have a more obvious inhibitory effect on corporate information disclosure violation.(4)The main conclusions are still hold after a series of robustness tests.Chapter 6,Investigates the relationship between the Party organization governance of private enterprises and the annual report readability.The findings are as follows:(1)Party organization governance in private enterprises can significantly improve corporate annual reports readability.The annual report readability can be significantly improved when the Party organization enters the board of directors and the management.In contrast,the annual report readability cannot be significantly improved when the Party organization enters the board of supervisors.(2)The function path test found that the Party organization governance can improve the annual report readability by restricting the company’s earnings manipulation.(3)The improvement of the annual report readability by Party organization governance in private enterprises will also be affected by the external governance mechanism and institutional environment.When the company’s media attention is low,the quality of external audit is poor,the economic policy uncertainty is high,and the legal environment of the registration place is good,the Party organization governance of private enterprises has a more obvious role in improving the annual report readability.(4)The main conclusions are still hold after a series of robustness tests.Chapter 7,Research conclusions,limitations and policy suggestions.First summarizes the research content,and then points out that the research limitation,finally put forward the corresponding policy recommendations.The innovation points are as follows:First,this paper constructs a multi-dimensional analysis framework of the influence of Party organization governance of private enterprises on the information disclosure quality of "compilation--disclosure--interpretation".In this paper,the characteristics of the annual financial report in the preparation,disclosure and interpretation stage are selected as specific indicators to measure the quality of information disclosure,so as to build an overall research framework and run through the research context of the full paper.From a multi-dimensional perspective,the quality of information disclosure is comprehensively and systematically investigated,providing a more systematic and complete logical chain and research reference.Second,this paper puts forward the theoretical model of the influence of Party organization governance on the quality of annual report digital information disclosure and the quality of text information disclosure.This paper incorporates the quality of digital information disclosure and text information disclosure in the annual report into the research system,builds a theoretical model of the impact of the Party organization governance on the quality of digital information disclosure and text information disclosure in the annual report,and conducts a thorough analysis of the Party organization governance on the overall quality of enterprise information disclosure from various perspectives.It has certain uniqueness,important practical significance and reference value.Third,expand the Party organization governance effect research.This paper makes an in-depth investigation into the influence of Party organization governance on the quality of information disclosure of private listed companies,which not only makes up for the lack of research on the factors restricting the quality of information disclosure of private listed companies,but also expands the research extension of the effect of Party organization governance on the governance of private enterprises.