The CPC party organization in privately controlled listed companies and earnings management

Zheng, Dengjin; Xie, Daoxin; Yuan, Wei

doi:10.1080/21697213.2019.1676050

Cited by 9 publications

(4 citation statements)

References 16 publications

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“…It has been a common phenomenon that the party organization of the CPC is embedded into private firms [55]. There are solid policy and legal bases for the establishment and construction of the party organization of the CPC.…”

Section: Institutional Embeddedness and Proactive Ecsrmentioning

confidence: 99%

“…Companies shall provide the party organizations of the CPC with conditions necessary for carrying out their activities." In fact, private firms have set up the party organizations of the CPC since the 1990s [45], and 1.88 million private firms have established the party organizations of the CPC by 2017 [55].…”

Section: Institutional Embeddedness and Proactive Ecsrmentioning

confidence: 99%

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The Origin of Proactive Environmental Corporate Social Responsibility (ECSR) of Large Firms: Institutional Embeddedness—Driven, Family Involvement-Promoted, or Resource-Dependent?

Wang

2021

Sustainability

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Why are some firms in China highly engaged in proactive environmental corporate social responsibility (ECSR) while others are not? Knowledge of the determinants of proactive ECSR is a key research question among academics and practitioners. This study seeks to advance the ECSR literature by suggesting a configuration way of integrating institutional embeddedness, family involvement, and the resource base factors of firms to predict proactive ECSR investment, a proxy for proactive ECSR. Specifically, this study explores how the combination of institutional embeddedness, family involvement, and the resource base factors of firms jointly shape the proactive ECSR investment of large firms. Using fuzzy-set qualitative comparative analysis (fsQCA) on a sample of 162 large private firms in China, this study finds that no condition alone is sufficient to account for high proactive ECSR investment. Institutional embeddedness, family involvement, and the resource base factors of firms must interact with one another to produce highly proactive ECSR investments. There exist two distinctive configurations that provide a nuanced picture of the drivers of proactive ECSR investment. These findings provide meaningful insights for theory and practice and pave the way for future research in the domain of ECSR.

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Section: Institutional Embeddedness and Proactive Ecsrmentioning

confidence: 99%

Section: Institutional Embeddedness and Proactive Ecsrmentioning

confidence: 99%

The Origin of Proactive Environmental Corporate Social Responsibility (ECSR) of Large Firms: Institutional Embeddedness—Driven, Family Involvement-Promoted, or Resource-Dependent?

Wang

2021

Sustainability

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“…More recently, some scholars have gone beyond the ownership focus to study the relationship between EM and either the sustainability reporting disclosure (Carey et al, 2017 ; Liu & Lee, 2019 ) or the impact of the introduction of managerial performance appraisal systems (He et al, 2020 ) in SOEs. Furthermore, a relevant stream of literature has focused on how earnings are managed during exceptional business circumstances, such as IPOs (Cheng et al, 2015 ; Huang & Li, 2016 ) and privatisations (Chen et al, 2014 ), and on specific contexts, such as the Chinese milieu (Lei & Wang, 2019 ; Zheng et al, 2019 ). Notably, the peculiarities of the empirical contexts and the exceptionality of the events in which EM has been investigated provide contrasting results on the explanatory power of the variables examined.…”

Section: Em and Financial Accountability In Soes: A Literature Reviewmentioning

confidence: 99%

Earnings management in state-owned enterprises: bringing publicness back in

2021

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Financial accountability is a major issue for State-owned Enterprises (SOEs) especially because of the large amount of public resources invested in them and the social relevance of their performance. In the awareness that the public interest is increasingly pursued in abstract arenas, the investigation of accounting should be anchored to conceptual rather than contextual spaces. Building on the dimensional concept of publicness, this paper investigates the impact of three publicness dimensions (ownership, political control, and goal ambiguity) on earnings management (EM) in SOEs, a managerial practice that affects the quality of financial accountability. Drawing on data from a sample of 1200 Italian SOEs, the conditional revenue model (Stubben, 2010) is used to estimate their EM during the period 2009–2017. These EM estimates are then regressed against dimensions of publicness. Findings show that publicness is either neutral or relevant for the quality of SOEs’ financial accountability, depending on the dimensions analysed: while ownership and financial control are positively related to EM in SOEs, administrative control and goal ambiguity are not statistically significant predictors of EM. Moreover, the interaction of publicness dimensions does not affect EM in SOEs. Therefore, this paper shows that SOEs’ publicness is either irrelevant or detrimental to the quality of SOEs’ financial accountability, depending on the dimension of publicness considered. Efforts should be made to define policies and governance arrangements able to influence managers’ behaviour in a way that preserves SOEs’ financial accountability.

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“…Referring party-organization involvements in corporate governance, it can more effectively supervise and constrain the managers' behavior of listed enterprises [50], ensuring enterprise compliance, reducing enterprise corruption, enhancing communication with superior party organizations [51], and ensuring the implementation of long-term development plans. The party-organization involvements in corporate governance has increased corporate value [42], improved the coverage of POEs' social insurance [52], enhanced corporate performance [53] and corporate social responsibility [54], restrained enterprises' earnings management [55], and reduced the business decision-making risk [56,57]. On the other hand, party-organization involvements in SOEs cannot solve the efficiency problem [51], which may increase the policy burden of enterprises to some extent.…”

Section: Introductionmentioning

confidence: 99%

The Influence of Party Organization Involvements in Corporate Governance on Innovation: Evidence from China’s Private-Owned Enterprises

Liu

Zhou

et al. 2022

Sustainability

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As the grassroots-party organizations of the Communist Party of China (CPC) are increasingly involved in the governance of private-owned enterprises (POEs), whether this new pattern promotes corporate innovation is still a research gap. Therefore, based on the data of 1357 POEs’ party-organization involvements and their patent applications from 2003 to 2017, this paper analyzes the impact of the party-organization involvements on corporate innovation by using the multiple regression model. The results include: (1) party-organization involvements including party organization activities and senior executives’ participation can significantly promote innovation, especially after 2012; (2) party-organization activities improve innovation by increasing research and development (R&D) investment and reducing operating risk, while the senior executives’ participation only influences on R&D investment; (3) the party-organization involvements have a stronger promotion on non-invention patent applications, especially for the utility-model-patent applications, than invention-patent applications; (4) the promotion is more pronounced for family businesses, technology-intensive and capital-intensive enterprises, as well as those located in the northern, Beijing-Tianjin-Hebei region and Yangtze River delta. After applying PSM sampling and difference-in-differences (DID) analyses, and substituting the dependent variables, the results remain robust. This paper provides Chinese evidence for party construction and corporate innovation, and also provides references about political connection and corporate innovation for other countries to some extent.

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The CPC party organization in privately controlled listed companies and earnings management

Cited by 9 publications

References 16 publications

The Origin of Proactive Environmental Corporate Social Responsibility (ECSR) of Large Firms: Institutional Embeddedness—Driven, Family Involvement-Promoted, or Resource-Dependent?

The Origin of Proactive Environmental Corporate Social Responsibility (ECSR) of Large Firms: Institutional Embeddedness—Driven, Family Involvement-Promoted, or Resource-Dependent?

Earnings management in state-owned enterprises: bringing publicness back in

The Influence of Party Organization Involvements in Corporate Governance on Innovation: Evidence from China’s Private-Owned Enterprises

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