CFO emphasis on value-based management: Performance implications and the challenge of CFO succession

Firk, Sebastian; Schmidt, Torben; Wolff, Michael

doi:10.1016/j.mar.2018.11.001

Cited by 31 publications

(10 citation statements)

References 73 publications

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“…We decided on the GEE model, as it enables us to consider the binary nature as well as the non‐normal distribution of our dependent variable while accounting for both within‐ and between‐firm variance to calculate robust estimates (Ballinger, 2004; Liang and Zeger, 1986). Given these benefits, the GEE model is frequently highlighted for adequately tackling the issue of unobserved heterogeneity when binary‐dependent variables are used in panel datasets (e.g., Firk et al, 2019; Guldiken et al, 2019; Gupta and Misangyi, 2018). Given our binary‐dependent variable, we specified a logit link function of the binomial family.…”

Section: Methodsmentioning

confidence: 99%

Chief Digital Officers: An Analysis of the Presence of a Centralized Digital Transformation Role

Firk

Hanelt

Oehmichen

et al. 2021

J Management Studies

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104

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By appointing a chief digital officer (CDO), firms decide for a central role responsible for their digital transformation. While CDOs have recently appeared in the C‐suites of firms across the globe, the current literature lacks insights into the specific antecedents of CDO presence. Grounded in the peculiarities of the digital age, we provide theoretical arguments explaining how the decision to centralize digital transformation responsibilities might be related to transformation urgency and coordination needs. Empirical analyses based on a panel data set of 913 US and European firms support that transformation urgency and coordination needs predict CDO presence. An additional analysis of moderating temporal effects reveals that, over time, the effect of transformation urgency is weakened and the effect of coordination needs on CDO presence is strengthened. We discuss implications for research and practice regarding the antecedents of CDO presence, TMT research more generally, and centralization in the digital age.

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Section: Methodsmentioning

confidence: 99%

Chief Digital Officers: An Analysis of the Presence of a Centralized Digital Transformation Role

Firk

Hanelt

Oehmichen

et al. 2021

J Management Studies

Self Cite

104

View full text Add to dashboard Cite

show abstract

“…Both the academic literature and the professional community claim that CFOs have expanded their responsibilities from the supervision of financial and accounting processes toward major corporate strategic decision-making (Baxter and Chua, 2008;Bedard et al, 2014;Zorn, 2004). For instance, scholars argue that a CFO contributes to the CEO's corporate strategy on financial plans, the composition of investments and the allocation of resources between alternate projects (Firk et al, 2019). Datta and Iskandar-Datta (2014) claim that the CFO is one of the most prominent C-suite executives and that his/her attributes represent a matter of increasing interest for the future research agenda, particularly considering that individual-level characteristics are likely to affect a firm's business choices and outcomes (Florackis and Sainani, 2018).…”

Section: Introductionmentioning

confidence: 99%

The chief financial officer (CFO) profile and R&D investment intensity: evidence from listed European companies

Ginesti

Spanó

Ferri

et al. 2021

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PurposeThis study aims to investigate whether the characteristics of the chief financial officer (CFO) have an impact on the intensity of the corporate research and development (R&D) investment.Design/methodology/approachBased on hand-collected data for the CFOs of a sample of the largest European listed companies for the period 2013–2016, this study uses regression analyses to test empirically the association of CFO education, CFO gender and CFO age with R&D investment intensity.FindingsThe presence of female CFOs, CFOs with a Master of Business Administration (MBA) or Doctor of Philosophy (PhD) degree and older CFOs is positively associated with the intensity of R&D investment.Research limitations/implicationsThis study relies on some observable characteristics of CFOs and focuses on large listed companies.Practical implicationsThe results of this study may help investors, stakeholders and practitioners to understand better which type of CFO characteristics are more likely to result in higher firm-level R&D investment intensity.Originality/valueThis study offers the first insights into the impact of CFOs, as the most prominent C-suite executives, on the level of corporate investments in R&D activity.

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“…This is particularly true in light of conference calls, where various corporate factors that also potentially affect the cost of capital intervene. Given these endogeneity concerns, recent research has shown that GMM is an appropriate choice (Firk, Schmidt, & Wolff, 2019;Wintoki, Linck, & Netter, 2012). The use of GMM involves certain advantages over other multivariate regression methods (e.g.…”

Section: Methodsmentioning

confidence: 99%

“…2SLS): First, GMM solves the issue of reverse causality by using instrumental variable estimates that are retrieved from the lagged values, thereby eliminating the need for external instruments (Roodman, 2006;Wintoki et al, 2012). 13 Second, GMM accounts for unobservable heterogeneity by including firm-fixed effects, which can also be assessed even though they are constant over time (Firk et al, 2019;Wintoki et al, 2012). 14 Third, GMM considers the dynamic relationship between disclosure and the cost of capital by allowing for the inclusion of the lagged cost of capital value (Wintoki et al, 2012).…”

Section: Methodsmentioning

confidence: 99%

Can the Balanced Scorecard Help in Designing Conference Calls? The Effect of Balanced Information Composition on the Cost of Capital

Firk

Hennig

Wolff

2020

European Accounting Review

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Most recent studies on conference calls focus on the costs for firms that can arise from the calls' open nature. We study the benefits of conference calls and hypothesize that firms could use the balanced scorecard concept as a framework for presenting the information (i.e. balanced information composition) in conference calls to lower the cost of capital. Our results show a negative association between a more balanced information composition in conference calls and a firm's cost of capital. Additional tests substantiate that the effect of such a balanced information composition on the cost of capital is driven by a reduction in information asymmetry. Overall, the findings suggest that firms can benefit from the balanced scorecard concept by using it as a framework for preparing their conference calls.

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CFO emphasis on value-based management: Performance implications and the challenge of CFO succession

Cited by 31 publications

References 73 publications

Chief Digital Officers: An Analysis of the Presence of a Centralized Digital Transformation Role

Chief Digital Officers: An Analysis of the Presence of a Centralized Digital Transformation Role

The chief financial officer (CFO) profile and R&D investment intensity: evidence from listed European companies

Can the Balanced Scorecard Help in Designing Conference Calls? The Effect of Balanced Information Composition on the Cost of Capital

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