Does Party Organization Embeddedness Affect The Efficiency Of Enterprise Resource Allocation?

At this stage,cost reduction has always been the biggest problem in the process of supply side reform.Especially in the pattern of great changes in China’s economic structure,how to carry out effective cost management is a major challenge for enterprises.Therefore,in the context of supply side reform,whether Party organizations can give play to their governance advantages,improve the effectiveness of cost decision-making,and then improve the efficiency of enterprise resource allocation is an important issue to be studied.Cost stickiness,as an important index to measure the internal resource allocation ability of enterprises,provides a new perspective for enterprise cost management.The discussion of this problem will help to open the black box of cost decision-making and promote enterprises to manage costs reasonably and effectively.Taking Shanghai and Shenzhen A-share listed companies from 2010 to 2019 as a sample,this paper empirically studies the impact of "party organization embedding" on enterprise resource allocation efficiency.The results show that the embedding of Party organizations inhibits the Cost Stickiness of enterprises.Then,this paper reveals the impact path of Party organization embedding on cost stickiness,that is,party organization embedding mainly suppresses Cost Stickiness and improves the efficiency of resource allocation by giving play to governance effect,information effect and resource effect.Further,based on the expansion of the uniqueness of the party organization,this paper finds that the governance mechanism of the party organization has a "complementary effect" with the equity incentive governance system and a "substitution effect" with the governance system of the board of supervisors;Based on the research on the expansion of the embedded form of Party organization,it is found that the embedded management of Party organization can play its governance role better;Based on the expansion of the embedded object of the party organization,it is found that if the senior executives of the enterprise just serve as the Secretary of the Party committee,the enterprise is state-owned,and in local enterprises,the party organization can play a more important role in reducing costs;Based on the expansion of the embedded environment of Party organizations,it is found that Party organizations mainly play a stronger governance role during the Party Congress and in areas with high marketization index and high degree of product competition.The research of this paper will reflect the following marginal contributions and values: first,it expands the relevant literature on the consequences of Party organization governance.The existing research mainly discusses the impact of Party Organization Governance on Enterprise M & A and risk-taking,but there is no literature to explore the impact of Party organization from the perspective of cost management.This paper studies the impact of Party organization embedding on Cost Stickiness and its mechanism from a new perspective,It also gives some thoughts on how to give full play to the optimal effect of Party organization embedding.Second,it enriches the research on the influencing factors related to cost stickiness.The existing research mainly focuses on the influence of capital market factors such as salary structure,cash flow level and external factor market environment.This paper empirically analyzes the role of Party organization embedding in cost decision-making from the perspective of the third political governance means-party organization governance.Third,this paper confirms the representativeness and advanced nature of Party organizations.The representativeness means that the party organizations can protect the interests of all parties,and protect the interests of the grassroots from the perspective of the masses.The advanced nature refers to the direction that the party organization can represent the future development of the country.This study not only expands the relevant research on Cost Stickiness and provides a theoretical basis for cost management,but also broadens the vision of the impact and consequences of Party organization embedded governance,which is conducive to enterprises to introduce "party organization embedded" to realize standardized and orderly comprehensive governance of the company...