https://www.clausiuspress.com/assets/default/article/2025/06/30/article_1751271958.pdf

Corporate value creation efficiency is not only a core element for enterprises to achieve sustainable development but also a key force driving high-quality economic growth at the national level. Based on data from Chinese A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2007 to 2022, this study empirically examines the impact of CEOs’ hometown identity on corporate value creation efficiency and its underlying mechanisms. The results show that local CEOs significantly enhance corporate value creation efficiency. External resources acquired through social capital and stable executive teams are the primary channels through which local CEOs improve efficiency. The positive effect of local CEOs is more pronounced in non-state-owned enterprises, smaller firms, and companies where the CEO also serves as the board chair. This research enriches the literature on factors influencing value creation efficiency from a comprehensive corporate social value perspective, while also expanding the study of how local CEO characteristics affect corporate behavior through the lens of value creation efficiency.