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The financial effects of the board of directors: how party organization embeddedness influences corporate innovation investment?

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  • Deng, Yuqin
  • Yu, Han

Abstract

This paper utilizes panel data from Chinese A-share listed companies spanning from 2015 to 2023. By employing fixed effects models, instrumental variable methods, and moderation effect analysis, the study empirically examines the mechanisms through which the embedding of Party organizations and the ideological and political backgrounds of senior executives influence corporate innovation investment. The findings indicate that the embedding of Party organizations significantly and positively promotes corporate innovation investment, while the ideological and political backgrounds of senior executives play a crucial positive moderating role in the relationship between Party organization embedding and innovation investment.

Suggested Citation

  • Deng, Yuqin & Yu, Han, 2025. "The financial effects of the board of directors: how party organization embeddedness influences corporate innovation investment?," Finance Research Letters, Elsevier, vol. 86(PA).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pa:s1544612325015570
    DOI: 10.1016/j.frl.2025.108303
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    References listed on IDEAS

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