To read this content please select one of the options below:

CCP committees, worker benefits and firm performance: empirical evidence from Chinese private firms

Cheryl Long (Xiamen University, Xiamen, China)
Jin Yang (Southwestern University of Finance and Economics, Chengdu, China)

Journal of Participation and Employee Ownership

ISSN: 2514-7641

Article publication date: 15 July 2022

Issue publication date: 16 August 2022

78

Abstract

Purpose

With an increasing number of Chinese private firms establishing primary level CPC Party committees, it is important to study the role of Party organizations in these firms. Using a nationwide survey of private firms in 2006, we empirically study the firm-level CCP committee's effect on workers' benefits and firm performance.

Design/methodology/approach

To overcome the potential endogeneity, we employ the regression discontinuity approach by utilizing the following rule from the Constitution of the CCP: Primary party committees should be established in any basic work unit with more than 3 full party members.

Findings

Our empirical results show that party committees in private firms have positive and statistically significant effects on many types of workers' benefits, including pension, unemployment insurance and workplace safety.

Originality/value

This paper highlights CCP committees as an important alternative mechanism in coordinating labor relationships in China when formal labor protecting institutions are weak.

Keywords

Acknowledgements

Funding: This work was supported by the National Natural Science Foundation of China Major Grant (Grant Number: 71790601) and National Natural Science Foundation of China (Grant Number: 72073114; Grant Number: 71803157).

Citation

Long, C. and Yang, J. (2022), "CCP committees, worker benefits and firm performance: empirical evidence from Chinese private firms", Journal of Participation and Employee Ownership, Vol. 5 No. 2, pp. 112-134. https://doi.org/10.1108/JPEO-09-2021-0015

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

Related articles