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The Importance of Role-Specific Performance and Sociopolitical Factors for Chief Financial Officer Employment Outcomes

Year: 2018

Type: article

Abstract: SYNOPSIS This paper investigates the importance of role-specific performance measures and sociopolitical factors in the career paths of CFOs. We find that forced CFO turnover is associated with poor performance in functions over which they have more direct influence, including financial reporting, financing, and regulatory compliance. We also find that CFOs are less likely to be dismissed when they have greater connectedness with the CEO and have stronger influence within the firm. Interestingly, sociopolitical factors are linked with promotion outcomes, but economic performance does not appear to play a significant role. The collective evidence indicates that both economic and sociopolitical factors have an important role in influencing CFO career paths.

Source: Accounting Horizons

DOI: 10.2308/acch-52251

Authors: Ellen Engel, Feng Gao, Xue Wang

Institutions: University of Illinois Chicago, Rutgers, The State University of New Jersey, The Ohio State University

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W2885618025

FWCI: 0.982

Cites: 72

Cited by: 11

Related to: 10