How Do Chief Financial Officers Affect Corporate Cash Policies?

CFO cultural background and stock price crash risk

“…Uhde, Klarner, and Tuschke (2017) note that CFOs play an increasingly influential role at the top of firms, but relevant studies remain scarce and fragmented. We provide additional evidence about the roles of CEOs and CFOs in the U.K. (Aguilera et al, 2006;Florackis and Sainani, 2018;Keenan, 2004). Last, we extend previous cross-country cultural literature by documenting the managerial cultural effect in a novel single-country setting.…”

“…The insignificant influence of CEOs on financial outcomes in U.K. firms may be attributable to the fact that they tend to be less powerful in U.K. than in U.S. firms (Keenan, 2004;Aguilera et al, 2006). Furthermore, the finding that CFOs play a more important role than CEOs in finance-related decisions is consistent with Kim et al (2011) and Florackis and Sainani (2018).…”

“…CFOs must have sufficient capabilities, experiences, and confidence. Professional skills accumulate over time, and these skills are more likely to be better developed in senior CFOs (Florackis and Sainani, 2018). In other words, CFO seniority is closely related to CFOs' level of professional skills, and it also captures how a CFO can affect a firm's financial strategy and information disclosure.…”

“…In addition, examining the impact of CFO cultural background in U.K. firms is especially relevant because, in the U.K., CEOs tend to be less powerful than in the U.S. (Keenan, 2004;Aguilera et al, 2006). 1 CFOs in the U.K. are also more likely to play a more significant role in their firms than those in the U.S. (Florackis and Sainani, 2018). 2 We construct a sample of public firms that are constituents of the FTSE All-Share Index between 1999 and 2015.…”

How does the data element-driven industry affect corporate cash holdings? Evidence from Chinese listed companies

“…Enterprises hold cash primarily based on transaction, precautionary, agency, and tax motives [ 16 ]. Scholars have studied the impact of internal factors like corporate governance structure [ 17 ], specific characteristics like corporate CEO [ 18 ], CFO characteristics [ 19 ], and enterprise size [ 20 ] on corporate cash holdings. External factors like country-specific factors [ 20 ], macro policy uncertainty [ 21 ], political uncertainty [ 22 ], market competition [ 23 ], product market dynamics and predation risk [ 24 ], peer effects [ 25 ], and social trust [ 26 ] influence cash holdings.…”