| Summary: | 碩士 === 東海大學 === 會計學系 === 97 === CFOs play important roles in the management team and are responsible to finance, investment, information disclosure, and provide management strategy suggestions. The role of CFO has gained the attentions from academia and regulations because of the fraudulent financial reporting in recent years. To make sure the quality of financial reports, CFOs have responsibilities to sign a statement stating that financial reports were presented fairly according to related regulations. Due to the vital role of CFOs, their turnover may reveal some inside information about the performance and prospect of the company.
The sample of this study was selected from listed companies in Taiwan from year 2000 to year 2007, and consists of 430 CFO turnover events. This study investigates whether CFOs use their discretionary power to benefit themselves on the events of CFO turnover. Performance-match method was used in this study to mitigate any possible residual effect of extreme financial performance on our discretionary accruals estimations. Furthermore, multiple regression models are used to control other variables affecting discretional accruals.
The results show that the change of performance-match abnormal accruals did not reduce significantly among CFOs turnovers. However, after classifying observations into voluntary and forced turnovers, performance-match abnormal accruals reduced significantly in the group of forced CFOs turnovers. And this implies that when CFOs turnovers were forced, the former CFOs have more incentives to increase accruals before change.
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