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- W3124165552 abstract "Along with state shareholding and government administration, the third source of political control of Chinese listed firms is the Communist Party of China (CPC). Using a unique hand-collected dataset that includes the party secretaries’ information for listed firms between 2000 and 2004, I examine the existence and power of the party secretaries in companies and their influence on performance. The party secretary is the leader of party committee and exercises the power of the CPC at firm-level. Power is assessed by whether the party secretary concurrently holds another key management position, such as chairman or CEO, thus allowing him or her to exert influence on the managerial decisions of the firm. I find that state-owned enterprises (SOEs) and firms with many employees are more likely to have a party secretary or a powerful party secretary than are other firms. Party secretaries are more likely to have political reliability but less professionalism than are CEOs or other senior managers. The existence of a party secretary is negatively associated with a firm’s performance, but only in SOEs. Non-state firms with a party secretary are more likely to have senior managers with political connections, but less professionalism, but I find no such significant results for SOEs. The firms with a party secretary or a powerful party secretary have lower labor productivity than do other firms, especially in SOEs and in regions with high unemployment rates. Overall, the results of this study suggest that the CPC has great influence over listed firms in China and that this influence should not be neglected in Chinese studies. JEL codes: G34, G38, L22, P26." @default.
- W3124165552 created "2021-02-01" @default.
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- W3124165552 date "2009-01-01" @default.
- W3124165552 modified "2023-09-23" @default.
- W3124165552 title "Party Control in China’s Listed Firms" @default.
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