Research On The Influence Of CFO Personal Characteristics On Financial Fraud

The widespread financial fraud jeopardizes the economic interests of creditors,shareholders,and other stakeholders,and CFO involved almost every accounting scandal.Therefore,more and more researchers gradually focus on various key figures of the CFO about the financial fraud phenomenon.Almost all listed companies in China have established CFO positions for corporate financial management.However,due to the gap between the level of domestic corporate governance and the world's leading level,the chairman or general manager of corporate still decide corporate affairs in most listed companies,and their subordinate CFOs have no decision-making power but only executive power.At the same time,CFO's accounting experience and business quality is not rich enough in some listed companies,they don't have full ability to act as corporate strategic decision makers.But they're also probably forced by the pressure from the CEO and often passively obey the CEO's opinions and requirements,which leaded the CFO to choose the latter facing the choice of morality and interests.In this situation,CFOs are often involved in corporate financial fraud.However,most of the current literature is about executives.The research of CFOs is mostly attributed to the study of the characteristics of top management groups.And the study about the impact of a certain external feature of the CFO personal characteristics on a certain type of accounting behavior in more,only a few studies is about the impact of financial fraud on CFO personal characteristics,and most of them paid close attention to the impact of CFO personal characteristics on earnings management,internal control quality,corporate performance,financial restatements,accounting information quality and so on.The single characteristics of the CFO is not only studied,but also the relationship between its key features and financial fraud is comprehensively analyzed.In order to study the above issues,principal-agent theory,information asymmetry theory,GONE theory,risk factor theory,higher-order theory and incentive theory are used as the basis of this article.Drawing on domestic and foreign research findings about corporate governance,and combing the characteristics of financial fraud companies,analysing the mechanism about the impact of CFOs' gender,age,tenure,salary,whether or not the shareholding,whether the directors on the financial fraud hypothesises areproposed,and empirical research is conducted.The study found that the four characteristics of the CFO-age,tenure,whether or not to hold shares,and whether or not the director-are significantly related to financial fraud,and the CFO's gender,salary are not significantly related to financial fraud.At the same time,further analysis found that,When the CEO's term is changed during the CFO's term,the impact of CFO's personal characteristics on financial fraud does not change much;When financial fraud companies are subdivided into the nature of state-owned enterprises,Only the CFO's personal characteristics of holding of shares in state-owned enterprises has a significant impact on financial fraud,and the performance of non-state-owned fraud companies is consistent with previous result.Finally,using the variable of Whether CEO is concurrently a director to substitute for the explained variables-financial fraud,empirical results is regressed,and robustness test is passsed;Therefore,in order to prevent financial fraud,first,the company should select and appoint the CFO scientifically based on gender,age,tenure,salary,whether it holds shares,and whether it is a director.In addition,we will make full use of CFO's reputation and build a CFO integrity database and strengthen training and construction of CFO professional ethics.All three aspects can effectively promote the full disclosure of financial information by the CFO,make CFO play strategic support role,thus preventing financial fraud,promote the long-term development of the company.