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Party organization embedded and corporate internal control level

Author

Listed:
  • Yan, Yongjun
  • Lyu, Qiao'e
  • He, Lanlan

Abstract

Embedding Party elements in corporate governance is not only a characteristic of Chinese corporate governance but also plays a positive role in improving the quality of internal control in Chinese enterprises. The results of this study show that the embedding of enterprise Party organizations can enhance the level of corporate internal control, and this impact is more pronounced in state-owned enterprises and in companies where the CEO has higher social capital. The findings of this study have theoretical significance and practical value in fully leveraging the leading role of enterprise Party organizations and promoting the high-quality development of Chinese enterprises.

Suggested Citation

  • Yan, Yongjun & Lyu, Qiao'e & He, Lanlan, 2024. "Party organization embedded and corporate internal control level," Finance Research Letters, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004719
    DOI: 10.1016/j.frl.2024.105441
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    References listed on IDEAS

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    1. Sun, Helin & Cappa, Francesco & Zhu, Jia & Peruffo, Enzo, 2023. "The effect of CEO social capital, CEO duality and state-ownership on corporate innovation," International Review of Financial Analysis, Elsevier, vol. 87(C).
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    3. Feng, Mei & Li, Chan & McVay, Sarah, 2009. "Internal control and management guidance," Journal of Accounting and Economics, Elsevier, vol. 48(2-3), pages 190-209, December.
    4. Li, Zhe & Wang, Bo & Wu, Tianlong & Zhou, Dan, 2021. "The influence of qualified foreign institutional investors on internal control quality: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 78(C).
    5. Altamuro, Jennifer & Beatty, Anne, 2010. "How does internal control regulation affect financial reporting?," Journal of Accounting and Economics, Elsevier, vol. 49(1-2), pages 58-74, February.
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    Cited by:

    1. Li, Xiaoxia & Lin, Jiahua & Tao, Xingye & Xu, Jinhua, 2025. "Does party organization embeddedness boost corporate environmental performance?," Emerging Markets Review, Elsevier, vol. 64(C).
    2. Cao, Jiawei & Tang, Jie, 2024. "Party organization embedding and enterprise labor income share," International Review of Economics & Finance, Elsevier, vol. 96(PB).

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