Abstract: By making use of the data of the A-share listed companies in Shanghai and Shenzhen stock exchanges from 2007 to 2014, this paper employs the double-difference model system to examine the policy effect and the mechanism of the opinion of the “three importants and one large” system on the performance of state-owned enterprises. The findings show that compared with the non-state-owned enterprises that are not affected by the opinion, the performance of the state-owned enterprises have been significantly improved since the implementation of the opinions of the “three importants and one large”. The results of the channel analysis shows that the opinion of the “three importants and one large”mainly plays its role in such channels as improving the internal control quality of state-owned enterprises, improving the investment efficiency of state-owned enterprises and the performance of mergers and acquisitions. Further research also finds out that the deeper the embedding of the Party organization governance, the more significant the effect of the opinion of the “three importants and one large”on the performance of state-owned enterprises. The above research conclusions not only provide empirical evidence at the micro level for the objectively evaluation of the actual implementation effect of the“three importants and one large”opinions, but also provide new ideas for further deepening the reform of state-owned enterprises.

Key words: “three importants and one large”; collective decision-making; performance of state-owned enterprise