Study On The Relationship Among CFO's Financial Executive Ability?Accounting Quality And Investment Efficiency

Investment is one of the basic preconditions for the sustainable development of modern enterprises.It determines the height and speed of future development of enterprises.The investment decision of an enterprise is not a simple procedural process,but a comprehensive strategic decision.The effectiveness of investment decisions directly affects the overall investment efficiency of the enterprise.As the financial leader of the company,CFO should give full play to its professional advantages,introduce enterprise resources into more valuable fields,improve the efficiency of investment,and control the authenticity of financial data to improve the quality of accounting information.However,due to the impact of agency conflicts,CFOs in listed companies in China generally have low voice rights and insufficient power,which affects the financial execution of CFOs.The entry of the CFO into the board of directors means that it can exercise voting rights on decisions within the scope of its duties and improve its own voice,thus improving the financial execution of the CFO.Therefore,this paper measures the financial executive ability of CFO based on the perspective of the board of directors,and analyzes the impact of CFO financial execution on the investment efficiency.Moreover,in order to clarify the mechanism of CFO's financial execution influence on investment efficiency,and the quality of accounting information was taken as the mediating variable to explore the relationship among the three factors by using the mediating effect test of Mr.Wen.Based on principal-agent theory and information asymmetry theory,this paper analyzes the impact of CFO's financial execution on investment efficiency,and combines reputation theory to explore the way of CFO's financial execution on investment efficiency.the hypothesis of this paper is put forward based on this.Then,based on the sample data of listed companies from 2008 to 2017,using principal component analysis,regression analysis and mediation analysis,the relationship between CFO financial execution,accounting quality and investment efficiency was empirically tested.From the regression results,we can see that: First,CFO financial execution is positively related to investment efficiency.Second,the financial executive ability of CFO is positively related to the quality of accounting information,that is,the entry of CFO into the board of directors is conducive to the improvement of the quality of accounting information.Third,the quality of accounting information is the intermediary factor of CFO's financial execution ability affecting investment efficiency.That is,CFO's financial execution ability affects the investment efficiency of enterprises by affecting the quality of accounting information.There are three possible innovations in this paper:(1)The existing literature has not yet discussed the impact of CFO financial execution on accounting quality.Through the research of this paper,it provides a new idea for the study of accounting quality.At the same time,it analyzes the intermediary role of accounting information quality in CFO financial execution and investment efficiency,and enriches the research between the three.(2)Exploring the impact of CFOs entering the board of directors on the company's investment decisions and the quality of accounting information,and capturing the corporate governance behaviors of different types of internal directors from a more specific perspective,thus providing a new perspective and evidence for the empirical study of the governance role of the board.(3)This paper starts from the governance role of the board of directors,according to whether the CFO enters the board of directors as a measure of the financial executive ability of the CFO.This measure can effectively capture the CFO's autonomy and decision-making power,and is a representative measure.