The Research Of The Influence Of Party Organization Participate In The Investment Of State-Owned Enterprises

The state-owned enterprise has always been the pillar of our national economy,the leading force of the whole economy system in our country.The reform and development of state-owned enterprises has vital significance to booming our country's economy development and consolidate the social stability.And enterprise investment decision is the most critical driving force in its development.Scale and direction of enterprise investment determines the enterprise's future growth and competitiveness.Party organizations participate is a very important characteristics of our country's state-owned enterprise governance.Party organization participating in corporate governance of state-owned enterprises,will be take effective guidance and supervision to the economic base that the party is in office,give full play to its role as the political core and role of as the foundation of the state-owned enterprises for the long-term development.In this paper,using this unique management mode of the state-owned enterprises in China as a starting point,through the theoretical analysis,model analysis and empirical test,investigates the party organization participate's influence in the investment decision of state-owned enterprises.First of all,this paper analysis and discus the theoretical basis,they are the factors that affect the state-owned enterprise investment decisions,way and mechanism that party organization participate.Reference Zhanglufang and Zhuguohong's model,establish game models of the shareholders of state-owned enterprises and state-owned enterprise executives,party organizations and state-owned enterprise executives,analyzed the company's investment decisions in the case party organization was not involved and in the case party organizations participate.The results show that,when the party organization was not involved,the state-owned enterprise executives tend to choose scale investment;And when the party organization participate,the state-owned enterprise executives will be more inclined to choose the R&D investment.Based on this conclusion,put forward the empirical hypothesis.At the end of the model,creating the state-owned enterprises and state-owned executives expected revenue function,results indicate that the probability of party organization supervision to enterprise investment decision and the probability of enterprises select scale investment or R&D investment will influence each other.Secondly,this paper adopts 994 state-owned listed companies from 2013 to 2015 as the research object,reference Ding Yongjian et al.(2016)study,divides the state-owned enterprise investment behavior into scale investment and R&D investment,and sets up multiple regression model,respectively investigates the party organization participate's impact on scale investment and R&D investment of state-owned enterprise.It is concluded that the party organization participation will reduce the scale investment of state-owned enterprises,increase the R&D investment of state-owned enterprises.In addition,through the further analysis,the sample is divided into central state-owned enterprises and local state-owned enterprises,found that party organizations participate in the local state-owned enterprise has obvious effect for inhibition to scale investment and promotion to R&D investment,but for the central state-owned enterprise inhibiting effect on scale investment and promoting effect on R&D investment is not significant.Than the participation way of the party organization is divided into "party organizations participate in governance of the board of directors ","party organization participate in the governance of the board of supervisors","party organization participate in the governance of management ",according to the results of regression analysis,"party organizations participate in governance of the board of directors " and "party organization participate in the governance of management" inhibiting effect on scale investment and promoting effect on R&D investment is remarkable,however,the inhibiting effect on state-owned enterprise scale investment and promoting effect on state-owned enterprise R&D investment of "party organization participate in the governance of the board of supervisors" is not notable.Finally,this article put forward some policy suggestions: strengthen the party organizations participate,promote state-owned enterprise innovative development,improve the state-owned enterprise officials achievements appraisal system and incentive system.