The Research On The Relationship Between The CFO As The Board Of Directors And The Investment Efficiency Of The Company

With the development of economy,the modern enterprise system has been developed and improved.In the process of developing and perfecting the corporate governance structure,CFO(Chief Financial Officer,CFO)came into being.CFO,as the chief financial officer of the company,is in charge of the financial affairs of the company,which is the embodiment of the development of the corporate governance structure to a new stage.The board of directors is in charge of the company's affairs and responsible for the company's business decisions.Due to the principal-agent problem and asymmetric information,the inefficient investment of company has been existed and received much attention.CFO has a certain financial background,CFO as member of the board of directors to provide financial information for the company's board and make relevant recommendations to help optimize the corporate governance structure.So it can improve the financial performance of the CFO,enhance the effectiveness of its position,improve the company's investment efficiency,and thus improve the company's operational efficiency.Besides CFO has a specific oversight functions and the functions involved in the decision-making that it should become a member of the board of directors to participate in the company's related matters.As a result,CFO not only can vote on matters related to the charge in its range,and also can have a communication with other members of the board of directors for decision face-to-face,in order to get financial decision support.At the same time,CFO,to a certain extent,the supervision of the enterprise management,will help to improve the corporate governance structure.Based on the above,this paper mainly investigates the CFO to become a member of the board on the efficiency of business investment,conducts literature research method,normative analysis and empirical analysis,and collect Shanghai A shares2011-2015 in 3595 sample data,using descriptive statistics,correlation and regressionanalysis of the sample data,Form the perspective of CFO become a member of the board's,analysis and test the impact of CFO entry board on corporate investment efficiency.The empirical results show that: CFO as the board of directors and corporate investment efficiency is significantly negative correlation,indicating that CFO being the board of directors can effectively alleviate the problem of corporate investment efficiency.At the same time CFO being the board of directors can not only ease the excessive investment behavior of company,but also can effectively inhibit the lack of corporate investment.Based on the research conclusions,this paper provides some suggestions for the improvement of corporate governance mechanism.