The impact of Party organizations' participation in corporate governance on the enhancement of corporate resilience

Abstract

This paper takes Chinese A-share listed companies from 2008 to 2023 as the research sample to explore the impact of Party organizations' participation in corporate governance on the enhancement of corporate resilience, with a focus on the mechanisms of financial intervention and the degree of enterprise digitalization. The results show that Party organizations' participation in corporate governance has a significant positive impact on corporate resilience. Through heterogeneity tests, it is found that the influence of Party organizations' participation in corporate governance on corporate resilience varies among labor-intensive, capital-intensive, and technology-intensive enterprises. Moreover, there are also differences in this impact among enterprises in different regions. The mechanism tests indicate that financial intervention serves as a mediator in the relationship between Party organizations' participation in corporate governance and corporate resilience. Notably, the mediating effect shows different characteristics between new and old enterprises. The new enterprises, facing more uncertainties and information asymmetry, benefit more from the role of Party organizations in facilitating financial access and enhancing resilience, while the effect is relatively weaker for old enterprises with established reputations and stable financial cooperation. The moderating effect analysis reveals that the degree of enterprise digitalization moderates the relationship between Party organizations' participation in corporate governance and corporate resilience. High - digitalization enterprises can integrate resources more efficiently and stimulate innovation with the help of Party organizations' participation in corporate governance, thus strengthening the positive impact on corporate resilience. This research provides empirical evidence for understanding the complex connections among corporate governance structures, financial factors, and corporate resilience. It offers valuable insights for optimizing corporate governance and enhancing corporate resilience, contributing to the sustainable development of enterprises in a complex market environment.