The Relationship between CFO Qualifications and Internal Control Weakness

• Main Authors: Tzu-Ya Yang, 楊茲雅
• Other Authors: Ya-Ying Chou
• Format: Others
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/s9s7hf

碩士 === 國立東華大學 === 會計與財務碩士學位學程 === 105 === This study investigates the relationship between the CFO's qualifications and a firm’s internal control weakness, the association between internal control weakness and CFO’s turnover, and explores the impact of a new CFO on improvement on internal control. Using a sample from Taiwanese listed firms from 2012 to 2015, several important findings emerge. First, I find that CFO qualifications are negatively associated with the number of internal control weaknesses, implying qualified CFOs can effectively implement good internal control system. Second, CFO’s turnover is positively associated with internal control weakness, meaning that internal control weaknesses increase the likelihood of CFO turnover. Third, hiring a new CFO may not improve a firm’s internal control. The results of this study provide managerial implications on how to improve internal control. Keywords: CFO's qualifications、internal control weakness、CFO’s turnover