Can the “Pre-Discussion” Decision-Making Mechanism of the Party Organization Improve ESG Performance? — An Empirical Study Based on the DID Model

Abstract

The “Pre-discussion” decision-making mechanism of the party organization is an important measure to integrate the party into the corporate governance structure of state-owned enterprises (SOEs). Taking the implementation of the “pre-discussion” decision-making mechanism in SOEs in 2016 as a quasi-natural experiment, using China’s Shanghai and Shenzhen A-share listed companies from 2011 to 2021 as samples, this paper employs the DID method to empirically examine the impact of the “pre-discussion” on the ESG performance of Chinese enterprises, as well explores the intrinsic pattern between ESG performance and the long-term value of enterprises. The study finds that the party organizations’ “Pre-discussion” decision-making mechanism can significantly promote corporate ESG performance, and the positive impact of ESG performance on corporate value has a long lag effect.