Reasons for CFO Turnover and Firm Performance

• Main Authors: Li-Chian Hsu, 許立芊
• Other Authors: Shu-Wei Hsu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/09752979882012410744

碩士 === 東海大學 === 會計學系 === 96 === Financial reporting is one of the channels for investors to understand the economic reality of firms and is prepared by Chief Financial Officers. The turnover of CFO may be triggered by either excellent or poor performance. However, the reasons for CFO turnover are not limited to firm performance. Therefore, this study examines the relationship between various reasons for CFO turnover and firms performance. The sample of this study was selected from listed companies in Taiwan to examine from year 2000 to year 2006. The proxies of firm performance are operating performance and stock market performance. In addition, the reasons for CFO turnover are divided into five categories, including quit, reassign, promote, retire and others. The result indicates that the quits of CFO associate with poor stock market performance and operating performance, and the promotions of CFO associate with better and steady growth in operating performance competed with other firms. In addition, the reassigns of CFO associate with declined stock market performance. Moreover, there is no association between the retirements of CFO and firms performance.