Research On The Function Mechanism Of Party Organization Embeddedness Affecting Internal Control

When party organization is embedded in the process of enterprise governance,it is the leading mechanism that is born in combination with the specific political environment of our country.Due to the restriction of the national nature of western countries,Western political parties cannot deeply participate in the market system,and their contribution and participation in corporate governance are far from sufficient.In order to study the way of corporate governance with Chinese characteristics,this paper attempts to study the effect of corporate governance brought by the Party organization embedding,and explore its unique contribution in the field of internal control.The main questions studied in this paper are whether the Party organization embedding can have an impact on the effectiveness of internal control of enterprises,and whether the degree of marketization and media attention,as important external variables,play an important role in regulating the relationship between the party organization embedding and the effectiveness of internal control.Existing studies on internal control mainly focus on the importance of senior executives and the intensity of policy supervision,and these influencing factors mainly rely on internal supervision.Party organizations are embedded in enterprises as an external supervisory force,providing stricter supervision and adopting a more impartial attitude in fulfilling their duties and obligations.Therefore,whether the Party organization embedded in the enterprise can affect the management level of the enterprise,and whether it can improve the effectiveness of the enterprise internal control,it is a topic worth studying for both academic circles and domestic enterprises.Therefore,this paper puts forward the assumption that there is a close relationship between party organization embedding and enterprise internal control,in order to further study the influence of Party organization embedding on the effectiveness of enterprise internal control.This paper takes A-share listed companies in Shanghai and Shenzhen from 2010 to 2019 as samples.Starting from the leadership mechanism of "two-way entry and cross-serving",this paper analyzes the influence of Party organization embeddedness on the effectiveness of internal control of listed companies,and chooses the perspective of external market as the moderating variable to conduct relevant research.The findings are as follows:(1)The deeper the degree of Party organization embedment,the higher the effectiveness of internal control.(2)The Party organization embedding in the board of directors can effectively improve the internal control of enterprises,and with the improvement of the degree of party organization embedding,the positive promoting effect on the effectiveness of internal control of enterprises is more obvious.(3)Although the Party organization embedded in the board of supervisors can also improve the effectiveness of enterprise internal control to a certain extent,it is not as good as the party organization embedded in the board of directors;The embedding of Party organization into senior management has not significantly promoted the effectiveness of enterprise internal control.(4)The "cross-serving" of Party organizations has a significant positive promoting effect on the effectiveness of enterprise internal control.(5)Both media attention and marketization degree have significant moderating effect on the relationship between Party organization embedment and internal control effectiveness.In short,the party organization"two-way entry,cross office and internal control effectiveness are significantly positive correlation.Among them,the higher the degree of the party organization embedded in the board of directors and the board of supervisors,the better the effect of internal control;A party secretary who also serves as chairman of the board can also improve the effectiveness of internal controls.Based on the above conclusions,this paper puts forward relevant policy suggestions from the perspective of party organization supervision,enterprise internal perspective and external market perspective.This study has reference value for enriching the theory and practice of Party organization and improving internal control strategy.