A Study About The Impact Of CFO Background On Corporate Performance And Corporate Governance

The paper is based on the samples of Chinese A-share Private Listed Companies from 2007 to 2015,we do empirical researches on the issues of CFO background characteristics and corporate performance and two types of agency issues,CFO internal and external sources and gender characteristics are used as major variables to measure CFO background,we mainly study the relationship between CFO sources and degree of separation of ownership and control,and CFO sources‘ effects on the company's financial performance,the internal agency problem and the tunneling of large shareholders.At the same time,we further examine the relationship between CFO gender and firm performance,the internal agency problem and the tunneling of large shareholders.And we explore the relationship between CFOs and the actual controlling shareholder when the tunneling of the large shareholder exists.The regression results show that:(1)Private listed companies whose major shareholders have higher degree of separation of ownership and control tend to choose inside CFOs.(2)Outside CFOs don‘t have a positive impact on the financial performance of private listed companies,however,the participation of actual controllers can significantly enhance the positive effect of outside CFOs on company performance.Besides they also fail to significantly reduce excess selling and administrative expenses within the company and ease the tunneling of large shareholders.(3)CFO gender characteristics have a significant impact on the company's excess selling and administrative expenses,and female CFOs can reduce the principal-agent problem within the company,but they have no significant impact on improving business performance and inhibiting the tunneling of large shareholders.Finally,based on the results of theoretical analysis and empirical research,this paper puts forward the following suggestions.We should improve the legal status of CFO and the incentive mechanism;Private listed companies should pay attention to the impact of the actual controllers and play the positive role of the largest shareholder founder CEOs to CFOs;For the continuous improvement of the governance mechanism,enterprises need to increase the proportion of female CFOs and improve their professional qualities so as to play their positive role in reducing the internal principal-agent problem,meanwhile CFO age,education and other background features are also very important.