What drives communist party building disclosure? Evidence from Chinese listed firms

PurposeThis paper aims to explore the determinants of communist party building (CCP)-building disclosures in Chinese listed companies. It fills a gap in the research on non-financial information disclosure related to CCP-building within corporate reports. The study examines various types of companies, including sole A-listed firms, state-owned enterprises (SOEs) and firms with different market orientations and regulatory histories. This study also provides novel insights into the institutional drivers and economic implications of CCP-building disclosures.Design/methodology/approachThe study uses an analytical approach to assess the disclosure practices of Chinese listed companies from 2014 to 2018. It uses content analysis of corporate reports, applying both qualitative and quantitative assessments of CCP-building disclosure. Regression analysis is used to test hypotheses related to factors influencing the presence and quality of disclosures.FindingsThe results show that sole A-listed firms and SOEs are more likely to disclose CCP-building information. Companies primarily operating in domestic markets, those with past regulatory violations and those in environmentally sensitive or consumer-oriented industries also tend to have higher levels of disclosure. The authors also find that Party-Building into Articles of Association initiative significantly increased CCP-building disclosure practice, with a stronger effect observed in SOEs. Finally, the authors find that a higher CCP-building disclosure practice enhances firm value, indicating that such disclosures may serve a strategic function beyond formal compliance. The study highlights the increasing importance of CCP-building information as a type of non-financial disclosure among Chinese firms.Originality/valueThis paper represents a pioneering effort to investigate CCP-building disclosure practices in Chinese listed firms, an area that has been largely underexplored. It offers valuable insights for academics, practitioners and policymakers by identifying key factors that drive CCP-building disclosure and contribute to a better understanding of corporate governance with Chinese characteristics.