CFO Power,Accounting Information Quality And Investment Efficiency

The Fifth Plenary Session of the 19 th Central Committee pointed out that China has entered a new stage of development,and achieving high-quality development has become a new development theme.How to change the mode of economic development and promote high-quality economic development in the new era has become a research hotspot.Enterprises are the main body of the market,the investment efficiency of enterprises is not only related to the survival and development of enterprises in the future,but also related to whether the country’s economy can smoothly achieve high-quality development.How enterprises use their own resources to achieve efficient investment is particularly important.As a member of the senior management team,CFO’s job responsibilities are no longer limited to basic accounting work.Instead,with their financial expertise and unique management experience,CFO participates in the strategic formulation of the enterprise.In particular,CFO has a great right of speech in the formulation of financial decisions,which also has an important influence on the investment efficiency of the enterprise.Whether CFO can exploit its advantages to the full and improve the efficiency of enterprise investment.It is worth investigating how the CFO power affects the efficiency of investment.Therefore,this paper intends to discuss the influence of CFO power on investment efficiency and its mechanism.Based on the review of existing relevant studies,this paper takes the A-share listed companies in Shanghai and Shenzhen from 2015 to 2020 as the object of research and uses the CFO power index of Chris(2018)to empirically analyze the influence of CFO power on investment efficiency and its mechanism.It also analyzes the heterogeneity of CFO power on investment efficiency under different property rights and different institutional environments.Finally,it further analyzes the influence and mechanism of CFO power on investment efficiency under different types of inefficient investment.The empirical results show that: firstly,CFO power has a significant positive impact on investment efficiency,and positive impact is significant in non-state-owned enterprises and enterprises in areas with good institutional environment;Secondly,the quality of accounting information is an mediating variable,and it plays an intermediary role in nonstate-owned enterprises and enterprises in areas with good institutional environment.Thirdly,under different types of inefficient investment,the enhanced power of CFO can significantly restrain the over-investment and under-investment of enterprises.Based on the above research,this paper proposes the following suggestions: firstly,pay attention to the role of CFO in enterprise investment decision-making,optimize the allocation of management power;Secondly,select and employ inter-disciplinary CFO to enhance the power of CFO in multiple dimensions;Thirdly,improve the construction of accounting information system,with high quality accounting information to force the improvement of enterprise investment efficiency.From the perspective of CFO power,this study provides a new idea for effectively improving the investment efficiency of enterprises,and also provides a reference for enterprises to optimize the governance structure and improve the internal governance system.