Abstract: Based on the sample data of China’s state-owned A-share listed companies, this paper empirically tests the differences of governance effects of Party organizations in different types of state-owned enterprises, and on this basis, it discusses the path selection of Party organization embedment in corporate governance in the context of the classified reform of state-owned enterprises. The empirical results show that, in the whole samples, there is no significant correlation between Party organizations’ participation in corporate governance and corporate performance; among the state-owned enterprises of public welfare type, there is a positive correlation between the degree of Party organizations’ participation in corporate governance and the corporate performance, and the higher the level of decision-making embedment and execution embedment, the better the enterprise performance will be. Among the state-owned enterprises of commercial type, the participation of Party organizations in corporate governance has an inverted U-type relationship with corporate performance, and the higher the level of supervision embedment, the better the enterprise performance is. These research results show that under the premise of adhering to the leadership of the Party organizations in the state-owned enterprises, we should adapt to the principle of adjusting measures to the particular enterprise, actively explore the effective path to improve the corporate governance mechanism of state-owned enterprises under the background of classified reform, and improve the operation efficiency of the state-owned enterprises.

Key words: party organization governance; classified reform; embedded party organizations; corporate performance