Does the work experience of regulatory leaders at local companies affect the productivity of state-owned enterprises? Evidence from China

Bingyu Xiao, Guangming Gong and Liang Xiao

Economic Modelling, 2025, vol. 145, issue C

Abstract: Work experience is a valuable form of wealth. Given that the provincial State-owned Assets Supervision and Administration Commission (SASAC), as the direct regulator of local state-owned enterprises (SOEs), leaders' work experience is closely related to their work ability. Using a sample of Chinese listed local SOEs from 2008 to 2020, we find that provincial SASAC leaders with work experience at local companies (WEALC) improve local SOEs’ total factor productivity (TFP). Moreover, mechanism tests show that improving information transparency is an important channel through which provincial SASAC leaders with WEALC significantly increase the TFP of local SOEs. Furthermore, longer pyramidal layers and fiercer industry competition attenuate the positive relationship between provincial SASAC leaders with WEALC and the TFP of local SOEs. Overall, our findings provide implications for mitigating productivity losses in SOEs from the perspective of regulator-specific characteristics.

Keywords: Provincial state-owned assets supervision; Work experience at local companies; Total factor productivity (TFP); Local state-owned enterprises (SOEs) (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:145:y:2025:i:c:s0264999325000021

DOI: 10.1016/j.econmod.2025.107007

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