CEO and CFO’s expertise and firm performance: Evidence from Asean Countries

Indira Emmelina Ernestine, Dyah Setyaningrum

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


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 languageEnglish
Title of host publicationAccounting, Auditing, CSR, and the Taxation in a Changing Environment
Subtitle of host publicationA Study on Indonesia
PublisherNova Science Publishers, Inc.
Number of pages12
ISBN (Electronic)9781536165180
ISBN (Print)9781536162776
Publication statusPublished - 1 Jan 2019


  • ASEAN Countries
  • CEO
  • CFO
  • Expertise
  • Firm performance


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