Abstract: Using the hand-collected data of party committees participating in governance of state-owned enterprises listed Shanghai and Shenzhen A-share from 2010 to 2019, this paper studies the influence of party committees participating in governance on the state-owned enterprises performance and its role path. The results show that party committees participating in governance can significantly improve state-owned enterprises performance; party committees participating in governance by embedding board of directors and managers can improve state-owned enterprises performance while party committees participating in governance by embedding board of supervisors has no significant effect on improving state-owned enterprises performance; party committees participating in governance can significantly improve internal control quality of state-owned enterprises and internal control quality plays a partial intermediary role in the relationship between party committees participating in governance and state-owned enterprises performance. Further, this paper examines the heterogeneity that party committees participating in governance affect the performance of different types of state-owned enterprises, find that party committees participating in governance plays a significant role in improving the performance of commercial competitive state-owned enterprises and internal control quality plays a partial intermediary effect, but party committees participating in governance fails to effectively improve the performance of state-owned enterprises with specific functions.

Key words: party committees participating in governance, state-owned enterprises performance, internal control quality, intermediary effect