| The world today is undergoing profound changes which are unseen in a century,and the operating environment for enterprises is more unpredictable than ever before."Black swan" and "gray rhino" events have occurred frequently,such as financial crisis,China-United States trade war,locust plague in East Africa and the novel coronavirus epidemic.The booming development of digital economy has also brought huge impact to enterprises.Volatility,uncertainty,complexity and ambiguity(VUCA)have become a normal market environment.In this "new normal",whether an enterprise can form resilience and learn,improve and transform in adverse events has become the key to its survival and even its future development.Under the dual system of party and government co-management,the biggest characteristic of China’s corporate governance system is that the party organization participates in corporate governance and gives full play to the political core role of the party organization in enterprise operation.With the continuous advancement of the reform of state-owned enterprises,the status of the party organizations of state-owned enterprises in the enterprise operation and corporate governance has been rising continuously through the system of "two-way entry and cross-appointment" embedded in corporate governance,and gradually formed the"four main body" corporate governance pattern of party committee,board of directors,board of supervisors and managers racing together bridle to bridle.The main role and governance effect played by the party organization participation in corporate governance are also becoming increasingly significant,and this system has gradually attracted extensive attention from the industry and academia area.Since the 18th National Congress of the Communist Party of China(CPC),in the face of complex environment changes at home and abroad,"preventing and defusing major risks" has been raised to a high level that concerns China’s overall economic development.In addition to party organizations and government departments,enterprises are also responsible for preventing and defusing major risks.They should shoulder this important mission boundlessly and do a good job of preventing and defusing major risks in detail at the micro level.Party organizations participation in corporate governance is the organic unity of the leadership of the Party and corporate governance,which is conducive to improving enterprises’understanding and execution of the policies of the CPC Central Committee,promoting enterprises to follow the policies and pay attention to the improvement of resilience,and doing a good job in crisis prevention to reduce the impact of external environment changes.The rise and fall of enterprises has a vital impact on the national economic situation and the resilience of enterprises is also an important guarantee for the sustainable and high-quality development of a country’s economy.Therefore,it is of great theoretical and practical significance to explore the relationship between party organization participation in corporate governance and firm resilience.Starting from the leadership system of "two-way entry and cross-appointment"in the participation of party organizations of State-owned enterprises in corporate governance in China,this paper selects 1,161 state-owned listed companies in the Shanghai and Shenzhen A-share markets from 2012 to 2020 as research objects.Based on the high-level echelon theory,stakeholder theory and principal-agent theory,the proportion of party members in the board of directors,board of supervisors and managers is used to measure the participation of party organizations in corporate governance,and the long-term growth and financial volatility are used to measure the resilience of enterprises.An econometric model is established to test the relationship between the two and explore the mechanism.The results show that the participation of state-owned enterprises’ party organizations in corporate governance is conducive to the improvement of enterprise resilience,and agency cost plays a part of the intermediary role between the two.This conclusion still holds after the robustness test.Further research shows that the participation of party organizations in the governance of the board of directors and managers can significantly improve the long-term growth of enterprises,and the participation of party organizations in the governance of the board of supervisors can significantly restrain the financial fluctuations of enterprises.When economic policy uncertainty is high,party organizations participation in corporate governance can promote enterprise resilience.This study provides an incremental basis for the implementation of the policy system of "two-way entry and cross-appointment" in State-owned enterprises in China,provides a strong support for "expanding the coverage of grassroots party organizations",and urges enterprises to make full use of the political and organizational advantages of grassroots party organizations into governance efficiency.In addition,with the profound changes of the external environment,to explore the influence factors of resilience is conducive to enterprise to adjust measures to local conditions to take steps to prevent,pay attention to the development of enterprise resilience,strengthen crisis preparedness and resolving ability,promote enterprise in frequent turmoil stable business environment of the bank of China,the power of our country economy sustainable development in the long run.May be the innovation of this paper lies in that the daily production from theuniversal time period of enterprises to review the resilience performance of enterprises,think enterprise toughness as a kind of ability formed in daily production and business operation and constitute of enterprise’s competitive advantages,treat it as a normalized index study,promote daily training and examination of enterprise resilience;at the same time,it provides a new perspective for the governance effect exerted by the leadership system of "two-way entry and cross-appointment" of party organizations,and enriches the basis for the formulation of policies related to party organization participation in corporate governance. |
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