Study On The Relation Between The CFO Personal Characteristic And Corporate Performance

The CFO system, originated from western countries, was designed to play financial supervisory functions for the purposes of solving the principal-agent problems. Since the1990s, with the rapid growth of the global economy, the CFO has been playing a new function. It not only needs to balance the interests between shareholders and managements, but also become one of important firm’s strategic decision-makers and executives. The CFO plays a strategic-supporting role in corporate governance.At present, the research mainly uses normative study methods, questionnaires and case studies.Most studies research the CFO’s functions, qualities and abilities, or the impact of CFO changes on the company,.However,only few research the relationship between the CFO personal characteristics and the corporate’s performance. Using the combining method of normative research and empirical research, This paper empirically analyses relations between the personal characteristics and corporate’s performance. CFO’s six personal characteristics include gender, age, educational background, professional title, term of office, part-time. The study finds that the CFO’s personal characteristics have a significant influence on the corporate’s performance:the higher personal characteristics on behalf of the CFO’s expert’s ability and popularity, the better the corporate’s performance shows.To some degree, this paper enriches the theory of advanced management theory. And it can provide data support and empirical evidence for CFO selection mechanism in our country.