The Party organization organically embedding the corporate governance system of SOEs through the two-way entry and cross appointment is the institutional advantage of China’s state-owned enterprises and is the key to the modernization of SOEs governance. The analysis based on the data of A share state-owned listed companies during 2010-2017 shows that the embedding of the Party organizations can effectively restrain the self-serving behavior of the executives, the deeper the Party organization embeds, the better the governance effect on executives’ self-serving behavior is. The high-quality audit can strengthen the restraining effect of the Party organizations on executives’ self-serving behavior. Under different governance situations, however, different embedding methods have the heterogeneity on the governance effect on different executives’ self-serving behaviors. Two-way entry can significantly suppress three kinds of self-serving behaviors of the executives such as snatching excess wage, enlarging wage gap and increasing excess on the job consumption, however, cross appointment only has good governance effect on the excess wage of the executives. High-quality audit can strengthen the suppressing effect of the Party organization embedding on snatching excess wage and excess on the job consumption but can not effectively enhance the governance effect of the embedding on enlarging the wage gap. Comparing with central enterprises and public welfare-type enterprises, the Party organization embedded into local enterprises and commercial state-owned enterprises has better governance effect on the executives’ self-serving behaviors. but with the increasing in analysts’ attention and the influx of fresh blood of the Party organization, the governance effect of the Party organizations has not been obviously enhanced. We should perfect the system and mechanism to clarify the specific situation of the Party organization embedding corporate governance, optimize the embedding path, strengthen the synergistic governance between the Party organization and other organizations, continuously improve the governance efficiency and performance and boost governance modernization for the state-owned enterprises with Chinese characteristics.