This paper focuses on the special corporate governance system of the party’s "two-way entry and cross-employment" with Chinese characteristics

manually collects the relevant data on party participation in corporate governance of A-share listed companies from 2007 to 2019

and studies the impact of party participation in corporate governance on corporate environmental performance. The research finds that the party’s "two-way entry" and "cross-employment" system can significantly improve the level of corporate environmental performance; and industry competition plays a positive role in adjusting the impact of party governance on environmental performance

i.e.

the stronger the industry competition

the stronger party participation in corporate governance promotes corporate environmental performance. Further research shows that the improvement of environmental performance has a negative effect on the cost of corporate equity capital

that is

the impact of the party on environmental performance reduces the cost of corporate equity capital. Conclusions of the research provide important inspirations for improving the mechanism of party participation in corporate governance

improving corporate environmental performance and reducing the cost of equity capital.