CFO Professional Background, Financial Risk And Corporate Value Research

The economic environment which contains economic globalization,the trend of abolishing regulation and technological innovation has been changed.So the problem that how to make good use of professional knowledge and strategy for the development of enterprises and firm value has been becomes the key issue.As CFO management has always been a hot topic,fruitful research results have been made in theory and practice,and the research results mainly include personal characteristics,job changes,etc.However,few scholars study the CFO how to use the professional knowledge to reduce the financial risk of the enterprise from the perspective of the information background so as to enhance the enterprise value.Based on this background,how the CFO affects the relationship between the enterprise financial risk and enterprise value is explored in this paper in order to provide reference for the related research of financial risk and enterprise value.The paper is proposed based on the domestic and foreign research results,the behavioral theory science,the enterprise value maximization theory and the principal-agent theory,analyzed the relationship between financial risk and enterprise,also analyzed the influence on the relationship between financial risk and enterprise value are explored by accounting and auditing professional background of the CFO.To distinguish the influences of different financial risks on enterprise value,the enterprise financial risk is divided into investment risk,financing risk and liquidity risk.Through the empirical analysis,the research show that:(1)In terms of the background of CFO in China's listed companies,CFOs with the titles of accountants and senior accountants account are the largest proportion of listed CFO groups with various titles and followed by CFOs holding qualification certificates such as International Certified Public Accountant(ACCA),American Certified Public Accountant(AICPA)and Certified Public Accountant(CPA).In summary,the professional level of CFO in our country is high so that the CFO has the ability to carry out financial decisions;(2)The CFO's professional background plays an important role in regulating the relationship between corporate financial risk and corporate value.The research shows that the background of CFO will strengthen the negative impact of enterprise investment risk on enterprise value,and inhibits the negative impact of financing risk and liquidity risk on enterprise value.It shows that CFOs with professional backgrounds are more powerful in risk control,and that makes they are more inclined to ensure the scale of investment,and at the same time,promote a more reasonable financing structure and reduce liquidity risk.As a whole,improve the value of the enterprise.The main contributions of this paper include two aspects:(1)Analysis the relationship between financial risk and enterprise value from the process of enterprise financial activities;(2)Explore the role of the professional background of CFOs in the relationship between financial risk and enterprise value from the perspective of enterprise management.