Empirical Study On CFO Characteristics And Earnings Quality Of Listed Companies

Listed companies to provide financial information directly affects the information usersto economic value evaluation, micro-enterprises to control and decision-making of investors.However, this information is often associated with its actual operating condition in thepresence of gaps. CFO is chief financial officer, is the company’s chief financial officer, is amodern company is the most important, the most valuable one of top management positions,is to hold the company’s nervous system (financial information) and blood system (cash)soul. In this paper, through the analysis of the characteristics of the CFO, and earnings qualitylinks, thus verifying analysis the correlation between the two, in order to improve the listedcompanies’ earnings quality objective.This paper firstly CFO and earnings quality related definitions, in the analysis of theprincipal-agent theory, corporate governance theory, human capital theory, motivation theory,based on the general analysis of correlation between them, select the CFO gender, age, salary,whether ownership, whether as a director, tenure, education a number of executives, part-time,whether as explanatory variables, using the descriptive statistical method, linear regressionanalysis method, the method of system analysis, combination of normative and positiveresearch method, analysis and verification of the relationship between. On this basis, thepaper from the perspective of the empirical model, using multiple linear regression analysis,through SPSS software to verify both the correlation between, study finds:1) CFO compensation and earnings quality shows a significant positive correlation, itproves that the annual salary as the most common, the most effective incentives play a veryimportant role, yearly salary is higher, more can promote CFO hard work, which is conduciveto improving the quality of listed companies earnings.2) CFO ownership and earnings quality shows a significant positive correlation,indicating that, if CFO in the listed companies in the stock helps to improve the quality oflisted companies earnings.3) CFO part-time number and earnings quality shows a significant positive correlationbetween, if CFO within the company to hold several duty concurrently personally, can causeits own interests and the interests of enterprises, so the CFO is lack of accounting information’s reason, instead, it may be CFO by virtue of their knowledge and skills, to listed company’sfinancial condition and results of operations to reflect the real, legitimate effective disclosureof accounting information, thus effectively improving the earnings quality of listedcompanies. 4) CFO ’s tenure, education, age and earnings quality is positively related to CFO,gender, directors and earnings quality is negatively correlated, but significant are very weak,the reason may be due to these features represent his personal traits, does not represent thecompany effect influence.Finally, on the basis of the research conclusion put forward to perfect CFO salaryincentive mechanism, deepen pair of CFO ownership incentive, careful selection of CFO intoa recommendation to the board of directors.