The Influence of Party Organization’s Participation in External Governance on the Innovation of China’s State-Owned Enterprises

摘要

Underunique institutional background, the governance of China’s state-owned enterprise (SOE) has a distinctivecharacteristic. The paper aims at researching the impact of Chinese CommunistParty’s participation in external governance on the innovation of China’sstate-owned enterprises. Since the 18th National Congress of theCommunist Party of China, the Central Commission for Discipline Inspectionbegan to inspect the central state-owned enterprises. The paper uses thepolitical event as natural experiment to research the impact of inspections oncorporate innovation, which is an important external mechanism of corporategovernance. Through the test of multi-period difference-to-differences (DID)model, the empirical results show that the inspection of the Central Commissionfor Discipline Inspection promoted the innovation of central state-ownedenterprises.