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Can the “Pre-Discussion” Decision-Making Mechanism of the Party Organization Improve ESG Performance? — An Empirical Study Based on the DID Model

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  • Tian He

    (The Party School of Hunan Provincial Committee of CPC, Changsha, Hunan, China)

Abstract

The “Pre-discussion” decision-making mechanism of the party organization is an important measure to integrate the party into the corporate governance structure of state-owned enterprises (SOEs). Taking the implementation of the “pre-discussion” decision-making mechanism in SOEs in 2016 as a quasi-natural experiment, using China’s Shanghai and Shenzhen A-share listed companies from 2011 to 2021 as samples, this paper employs the DID method to empirically examine the impact of the “pre-discussion” on the ESG performance of Chinese enterprises, as well explores the intrinsic pattern between ESG performance and the long-term value of enterprises. The study finds that the party organizations’ “Pre-discussion” decision-making mechanism can significantly promote corporate ESG performance, and the positive impact of ESG performance on corporate value has a long lag effect.

Suggested Citation

  • Tian He, 2024. "Can the “Pre-Discussion” Decision-Making Mechanism of the Party Organization Improve ESG Performance? — An Empirical Study Based on the DID Model," Frontiers in Management Science, Paradigm Academic Press, vol. 3(1), pages 70-81, February.
    • Handle: RePEc:bdz:frmans:v:3:y:2024:i:1:p:70-81
    DOI: 10.56397/FMS.2024.02.08
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