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Regulators' work experience at local companies and SOEs' investment efficiency: Evidence from provincial SASAC leaders

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  • Xiao, Bingyu
  • Gong, Guangming
  • Xiao, Liang

Abstract

Using a sample of Chinese local listed state-owned enterprises (SOEs) from 2008 to 2020, we find that provincial State-owned Assets Supervision and Administration Commission (SASAC) leaders' work experience at local companies significantly improves local SOEs' investment efficiency. This effect is stronger for local SOEs with shorter pyramidal layers and those in regions with weak institutional environments. Moreover, mechanism tests show that provincial SASAC leaders' work experience at local companies improves local SOEs' investment efficiency by decreasing agency costs and weakening policy burdens. Overall, our study highlights the important role of regulators' characteristics in determining the investment efficiency of SOEs.

Suggested Citation

  • Xiao, Bingyu & Gong, Guangming & Xiao, Liang, 2024. "Regulators' work experience at local companies and SOEs' investment efficiency: Evidence from provincial SASAC leaders," Emerging Markets Review, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:ememar:v:60:y:2024:i:c:s156601412400027x
    DOI: 10.1016/j.ememar.2024.101132
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