Abstract
This research offers a comprehensive exploration into the influence of the Communist Party of China's involvement in corporate governance and its subsequent effect on the total factor productivity of firms. Drawing data from publicly listed firms spanning from 2008 to 2021, we employ a multi-period difference-in-differences analytical approach. Our investigations reveal that the establishment of party organisations within private firms notably enhances their productivity. Empirical evidence consistently underscores the positive role of the Communist Party of China in elevating productivity standards. This outcome is further corroborated through rigorous validation tests.
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