The Study of the Effect of CFO Changed on Corporate Performance

• Main Authors: Yun -Jung Chang, 張芸榕
• Other Authors: Huey-Ling Shiau
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/84740412401323077727

碩士 === 東海大學 === 財務金融學系碩士在職專班 === 101 === In recent years, projects of failed internal control and cases of financial fraud appear in an endless stream. Therefore, the investors are interested in topics related to personnel change of the company's CFO in order to protect their own wealth. Most researches focus on whether or not a company’s financial distress is related to position rotation of its financial director, yet few studies shed light on the impact of personnel change to a firm’s performance. This study investigates whether the position rotation of the company's financial director has impact or not on the subsequence performance. Next, we examine if frequent turnover of the financial director affects performance as well. Furthermore, we explore whether the existence of independent directors has any influence on the company's performance under different financial situations. We use the univariate analysis, logistic regression, and multiple regression in this study which is of publicly offering in Taiwan Security Exchange samples from 2006 to 2012. Moreover, we find. 1..The companies which are smaller in size, less profitable, and higher M/B ratio as the numbers of turnover of the CFO are higher. 2.The companies which own high turnover of CFO hires independent directors have better operating performance that is consistent to the “aggressive supervision hypothesis”. 3.The turnover of CFO of the company is higher if the operating performance (ROA, ROE), the corporate governance, financial condition are worse and the size is smaller in the former year. 4. The turnover of CFO of the company is negatively correlated to the operating performance (ROA, ROE). The performance of the company is worse continuously as the number of the turnover more frequently. The Tobin’s Q is positively correlated to the turnover of CFO, indicating investors expect the value of the company in the future. Once the company hire independent director would improve the performance of the company. However, the interactive item of the number of the turnover of CFO and the hiring of the independent director would not improve the performance of the company.