The Empirical Study On How The CFO’s Background Characteristic Influence Enterprises’ Investment Efficiency

With the advent of rapid economic development, our country enterprise’s management level and operation philosophy is in line with international standards. After a high savings, high investment and high growth of economic development, inefficient investment problems also gradually emerge, including excess capacity and the waste of investment and redundant construction. Under such circumstances, there is also the serious problem of inefficient investment in the listed companies. Therefore, improving the investment efficiency of enterprises could help to promote sustainable and healthy enterprise development, built to last. As the leader of the development strategy of enterprise financial decision-making, CFOs often have personal style when making the company’s investment decisions, namely the CFO for investment preferences of different background characteristics is different, which will affect the efficiency of the enterprise investment. In this paper, in the perspective of CFO background characteristics, to explore the different nature of property rights, how the CFO natural attribute and social attribute affect corporate investment efficiency.Based on the results of the previous study, define the concepts of CFO background characteristics and the inefficient investment, according to the upper echelons theory, management theory and principal-agent theory, analyze how the feature of CFO influence the efficiency of the investment, and put forward the research hypothesis. Then select the data in Shanghai and shenzhen A-share listed companies from 2008 to 2014 as study samples, based on the efficiency of investment as explained variable, CFO background characteristics as explanatory variables, establish multiple linear regression model. Further to distinguish the different nature of property rights, grouping for independent samples t test, to explore the CFO natural attribute and social attribute of the efficiency of the enterprise investment. The empirical results show that the CFO’s age, gender, level of education, financial expertise, tenure, whether ownership, whether to enter the board of directors, and compensation has a significant influence on the efficiency of investment, and under the different nature of property rights, the results have certain differences. Combined with empirical study results, put forward the following Suggestions: On the mechanism of employ CFO, the enterprise shall appoint its CFO according to their own characteristics. To make female have more influnence on business decisions, nonstate-owned enterprises should break the original idea of "female than male", eliminate gender discrimination, make the men and women in decision-making position have the same status; Enterprises should avoid too frequent replacement of CFO; Enterprises shall strengthen their CFO from multidimensional incentive measures.