The relationship between CFO qualifications and internal control weakness
The relationship between CFO qualifications and internal control weakness
Author(s): Yaying C. Yeh, Chiulien C. Venezia, Tzu-Ya YangSubject(s): Business Economy / Management, Accounting - Business Administration, Socio-Economic Research
Published by: Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
Keywords: CFO qualification; Financial Accounting background; CFO competence; Seniority; Internal control weakness;
Summary/Abstract: This study explores the relationship between CFO qualifications and a firm’s internal control weakness (ICWs). We use three measures for CFO competence: financial/accounting background, seniority, and education. Using a sample of Taiwanese listed firms from 2012 to 2015, the results of this study show a negative relationship between CFO financial/accounting background and seniority with internal control weakness, indicating firms with higher quality CFOs experience a lower number of ICWs. CFO education level, however, is not related with a firm’s internal control weakness. The results imply that capable CFOs can effectively implement a good internal system. The result of this study provides practical and policy implications.
Journal: Financial Internet Quarterly
- Issue Year: 18/2022
- Issue No: 2
- Page Range: 21-29
- Page Count: 9
- Language: English
