The Empirical Study On The Impact Of CFO Background Characteristics To Asset Impairment

The choice of accounting policy has been the focus of research in the field of financial accounting. Early empirical accounting mostly from the economic and earnings management factors discuss accounting policy choice motivation, according to the upper echelons theory and management theory of defense, executive background characteristics can influence the enterprise strategy and performance, they make a favorable choice from their own interests to the accounting policy. Asset impairment policy as an important accounting policy, also may differ with the personal characteristics, CFO is responsible for overseeing the company’s financial reporting process, can direct contact with enterprise’s financial information, so compared with other executives they have a more direct impact to company accounting decision. This paper is mainly concerned with the CFO’s personal background characteristics on enterprise assets impairment accounting behaviors.Because this study discuss the impact of CFO’s background characteristics on asset impairment, select the A shares’ relevant data from 2010 to 2014 of the stock market as the initial sample. Established the regression model and Empirical research the relationship between background characteristics of CFO and the impairment of assets.Empirical results show that：female CFO’s managerial entrenchment degree is higher than male CFO, drawing lower assets impairment preparation; CFO’s age and assets impairment provided negatively relationship,but significantly weaker, may influenced by other factors; the higher degree of the CFO, longer term higher provision for impairment of assets. Through robustness test,the background characteristics of CFO with accounting policy choice does have certain correlation.Finally according to the conclusions of the empirical research, from the characteristic factors of CFO’s background proposed some reasonable policy recommendations:take an active interest concern background characteristics on the quality of accounting information; improve the equity incentive mechanism; careful consideration CFO enter the board decision-making; strengthening the CFO’s construction of professional ethics.