Research On The Value Effect Of Employing CFO With CPA Background In Lepu Medical

With the expansion of the company's operating scale and the increasing complexity of its internal processes,the accounting process has become increasingly difficult.More and more companies,especially some high-growth companies,tend to hire CFOs with CPA background to solve the accounting problems they face.However,accounting training focuses on prudent and accurate financial reporting,and CFOs with a CPA background focus more on conservative financial decisions.This is beneficial to the value promotion of low growth enterprises,and may be very unfavorable to the value promotion of high growth enterprises that need to bear high risks.Therefore,this paper discusses how high growth enterprises employ CFO with CPA background to influence enterprise value,and how to avoid adverse effects.This article focuses on the following two issues.First,is the CPA background CFO's financial decisions tend to be conservative,for example,reducing R & D and capital expenditures,and less external financing have a negative impact on corporate development and value.Second,based on the theory of bounded rationality and the theory of matching people and positions,it is studied whether introducing other executives with higher risk awareness while introducing CPA background CFO is beneficial to the development of the enterprise and the promotion of value.In order to answer the above two questions,this article selects Lepu Medical for case analysis.Lepu Medical is a high-growth enterprise.The company first hired a CPA background CFO,and then re-equipped the executive team.It added several vice presidents with investment and operating experience and high risk awareness.This provided us with An opportunity for research.This article takes this as a case,and first analyzes the motivation of Lepu Medical to hire a CPA background CFO and the selection of later executives;Secondly,by analyzing the changes in corporate value and performance after hiring CFOs with CPA background and the adjustment of senior management strategies,this article explores whether hiring CFOs with CPA background in high-growth enterprises has a negative impact on corporate value and development.Whether hiring executives with investment and operating experience make up for the lack of CFO in CPA background;Finally,this article analyzes the changes in the company's R & D activities,external investment activities,and external financing activities to explore the role of CPA background CFO on the impact of corporate value,in order to confirm that CPA background CFO conservative financial decisions affect high-growth enterprise value The key to creation,and matching senior executives can improve conservative financial decisions and thereby increase corporate value.Through theoretical analysis and case analysis,this paper finally draws the following conclusions: The CFO of the CPA background has a negative impact on the value of highgrowth enterprises.The impact is mainly through conservative financial strategies.At the same time,the background of the executive team is diversified,that is,the diversification of capabilities and personality characteristics,which promotes the value of high-growth enterprises.In this regard,this article gives suggestions from the level of high-growth enterprises and individuals.This article's research on the above issues has deepened our understanding of the economic consequences of CPA background CFO in terms of corporate value creation and its mechanism of action,and has theoretically enriched relevant literature on CFO background research.In practice,it provides theoretical references and case evidence for relevant high-growth companies in hiring CFOs and conducting reasonable senior management matching.