The impact of top managers with diverse backgrounds on the operational efficiency of Chinese state-owned toll road companies

Abstract

This study investigates whether and how top managers with diverse backgrounds influence the operational efficiency of Chinese state-owned toll road companies (CSTRCs). Using panel data from CSTRCs between 2011 and 2021, we examine the impact of top managers' diverse background characteristics on operational efficiency, and focus on the moderating role of external supervisory environments. The results indicate that top managers with diverse backgrounds significantly improve operational efficiency, particularly for companies in western China. Further mechanism analysis reveals that local government supervision strengthens the positive effect, and that this moderating role is further enhanced when public supervision is present. Our findings offer new insights into the endogenous drivers of operational efficiency and provide practical implications for promoting efficiency improvements in state-owned companies.