Abstract
This study examines the association between the chief executive officer (CEO) and chief financial officer’s (CFO’s) expertise and firm performance, as measured by Tobin’s Q, while professional certification, advanced education in finance and accounting, age, and tenure are used to measure CEO and CFO’s expertise. Hypotheses are tested using regression analysis with 235 firm-year observations from six ASEAN countries (Thailand, Singapore, Malaysia, the Philippines, Indonesia, and Vietnam) in 2015. Results show that CEO tenure has positive association with firm performance. Moreover, firm performance is better if companies have a CFO with relatively longer tenure and advanced education in finance and accounting. Therefore, in recruiting a CEO, experience proxied by tenure is a crucial factor, and in recruiting a CFO, advanced education in finance and accounting is a crucial factor. This study is important because it delivers evidence on the link between CEO expertise and firm performance. Overall, to make investment decisions, investors need to pay attention to the experience of the CEO and the CFO because their combined expertise has been found to effect better firm performance.
| Original language | English |
|---|---|
| Title of host publication | Accounting, Auditing, CSR, and the Taxation in a Changing Environment |
| Subtitle of host publication | A Study on Indonesia |
| Publisher | Nova Science Publishers, Inc. |
| Pages | 175-186 |
| Number of pages | 12 |
| ISBN (Electronic) | 9781536165180 |
| ISBN (Print) | 9781536162776 |
| Publication status | Published - 1 Jan 2019 |
Keywords
- ASEAN Countries
- CEO
- CFO
- Expertise
- Firm performance