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| Research on the Impact of Party Organization Participation in Governance on Enterprise Cost stickiness from the Perspective of Resource Allocation Efficiency |
| CHEN Xiaofang，CHEN Xin，HONG Hong，CHEN Chenchunzi |
| Wuhan University of Technology， Wuhan， China |
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Abstract From the perspective of resource allocation efficiency, this study empirically examines how Party organization participation in governance affects cost stickiness in Chinese A-share listed firms (2010~2019), and explores its institutional uniqueness and mechanisms. Results show that Party organization participation in governance significantly reduces cost stickiness and improves resource allocation efficiency, with a substitution effect observed between Party governance and supervisory board governance. Mechanism analysis reveals Party organizations exerts supervision effect, information effect and resource effect. Furthermore, it reduces cost stickiness by strengthening supervision, reducing information asymmetry and excessive investment, and alleviating financing constraints. The effect is more pronounced in non-state-owned firms, those in less marketized regions, and firms with lower shareholding ratio of institutional investors.
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Received: 14 December 2023
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