Chief Financial Officer Educational Background and Company Performance
(1) Airlangga University
(2) Airlangga University
Abstract
Purpose: This study aims to examine the relationship between the Chief Financial Officer (CFO) education background and company performance. We identified educational background levels, namely bachelor, master, doctorate, and certification.
Method: This study uses 1176 sample companies listed on the Indonesia Stock Exchange IDX in
2014-2017. This study uses purposing sampling and testing Ordinary Least Square Regression STATA 14.
Finding: This study found that companies with only a CFO with a specific educational background of CFO is significantly impact on company performance. Master’s educational experience and certification show a negative relationship while the rest are unrelated to company performance, but bachelor and doctoral degree show otherwise.
Novelty: This research contributes empirically to the development of the literature. It practically provides consideration for stakeholders to pay more attention to the educational qualifications of CFOs regarding the company’s spatial reporting policies.
Keywords
Full Text:
PDFReferences
Agrawal, A., & Chadha, S. (2005). Corporate governance and accounting scandals. The Journal of Law and Economics , 48 (2), 371–406.
Bantel, KA, & Jackson, SE (1989). Top management and innovations in banking: Does the composition of the top team make a difference? Strategic Management Journal , 10 (S1), 107–124.
Bedard, JC, Hoitash, R., & Hoitash, U. (2014). Chief financial officers as inside directors. Contemporary Accounting Research . https://doi.org/10.1111/1911-3846.12045
Birkett, WP (2002). Competency profiles for management accounting practice and practitioners . International Federation of Accountants, Financial and Management Accounting ….
Bots, JM, Groenland, EAG, & Swagerman, D. (2009). An empirical test of Birkett's competency model for management accountants: a confirmative study conducted in The Netherlands. Journal of Accounting Education , 27 (1), 1–13.
Calori, R., Johnson, G., & Sarnin, P. (1994). CEOs' cognitive maps and the scope of the organization. Strategic Management Journal , 15 (6), 437–457.
Campello, M., Graham, JR, & Harvey, CR (2010). The real effects of financial constraints: Evidence from a financial crisis. Journal of Financial Economics , 97 (3), 470–487.
Carpenter, JP, Daniere, AG, & Takahashi, LM (2004). Cooperation, trust, and social capital in Southeast Asian urban slums. Journal of Economic Behavior and Organization , 55 (4 SPEC.ISS.), 533–551. https://doi.org/10.1016/j.jebo.2003.11.007
Carpenter, MA, Geletkanycz, MA, & Sanders, WG (2004). Upper echelons research revisited: Antecedents, elements, and consequences of top management team composition. Journal of Management , 30 (6), 749–778.
Chen, H. (2014). Board capital, CEO power and R&D investment in electronics firms. Corporate Governance: An International Review , 22 (5), 422–436.
Cyert, RM, & March, JG (1963). A behavioral theory of the firm (Vol. 2, Issue 4). Englewood Cliffs, NJ.
Dalziel, T., Gentry, RJ, & Bowerman, M. (2011). An integrated agency–resource dependence view of the influence of directors' human and relational capital on firms' R&D spending. Journal of Management Studies , 48 (6), 1217–1242.
Darmadi, S. (2013). Board members' education and firm performance: evidence from a developing economy. International Journal of Commerce and Management .
Donkers, B., Melenberg, B., & Van Soest, A. (2001). Estimating risk attitudes using lotteries: A large sample approach. Journal of Risk and Uncertainty , 22 (2), 165–195.
Faleye, O., Hoitash, R., & Hoitash, U. (2018). Industry expertise on corporate boards. Review of Quantitative Finance and Accounting , 50 (2), 441–479.
Finkelstein, S., & Hambrick, DC (1990). Top-management-team tenure and organizational outcomes: The moderating role of managerial discretion. Administrative Science Quarterly , 484–503.
Frank, MZ, & Goyal, VK (2007). Corporate leverage: How much do managers really matter. Available at SSRN , 971082 .
Graham, JR, & Harvey, CR (2001). The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics , 60 (2–3), 187–243.
Haleblian, J., & Finkelstein, S. (1993). Top management team size, CEO dominance, and firm performance: The moderating roles of environmental turbulence and discretion. Academy of Management Journal , 36 (4), 844–863.
Hambrick, DC (2007). Upper echelons theory: An update. In Academy of management review (Vol. 32, Issue 2, pp. 334–343). Academy of Management Briarcliff Manor, NY 10510.
Hambrick, DC, & Mason, PA (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review , 9 (2), 193–206.
Hitt, MA, & Barr, SH (1989). Managerial selection decision models: Examination of configurational cue processing. Journal of Applied Psychology , 74 (1), 53.
Hitt, MA, & Tyler, BB (1991). Strategic decision models: Integrating different perspectives. Strategic Management Journal , 12 (5), 327–351.
Kemp, S. (2011). Corporate governance and corporate social responsibility: Lessons from the land of OZ. In Journal of Management and Governance (Vol. 15, Issue 4, pp. 539–556). https://doi.org/10.1007/s10997-010-9133-6
Knight, D., Pearce, CL, Smith, KG, Olian, JD, Sims, HP, Smith, KA, & Flood, P. (1999). Top management team diversity, group process, and strategic consensus. Strategic Management Journal , 20 (5), 445–465.
Lin, C., Lin, P., Song, FM, & Li, C. (2011). Managerial incentives, CEO characteristics and corporate innovation in China's private sector. Journal of Comparative Economics , 39 (2), 176–190.
Matsunaga, SR, & Yeung, PE (2008). Evidence on the impact of a CEO's financial experience on the quality of the firm's financial reports and disclosures .
Papadakis, VM, & Barwise, P. (2002). How much do CEOs and top managers matter in strategic decision‐making? British Journal of Management , 13 (1), 83–95.
Purkayastha, S., Manolova, TS, & Edelman, LF (2018). Business group effects on the R&D intensity-internationalization relationship: Empirical evidence from India. Journal of World Business , 53 (2), 104–117.
Simon, N., & Moore Johnson, S. (2015). Teacher turnover in high-poverty schools: What we know and can do. Teachers College Records , 117 (3), 1–36.
Stone, WS, & Tudor, TR (2005). The effects of functional background experience, industry experience, generic executive management experience on perceived environmental uncertainty and firm performance. Advances in Competitiveness Research , 13 (1), 1–9.
Sun, J., Kent, P., Qi, B., & Wang, J. (2019). Chief financial officer demographic characteristics and fraudulent financial reporting in China. Accounting & Finance , 59 (4), 2705–2734.
Wiersema, MF, & Bantel, KA (1992). Top management team demography and corporate strategic change. Academy of Management Journal , 35 (1), 91–121.
Refbacks
- There are currently no refbacks.
Jurnal Dinamika Akuntansi is licensed under a Creative Commons Attribution 4.0 International License