Scholarlink

<p>We examine how powerful CFOs influence investment efficiency, addressing the gap in research on the role of CFO power in corporate financial decisions. Existing literature primarily focuses on CEO power, often highlighting its contribution to overinvestment, but the impact of CFO power is less understood. Using data from S&amp;P 1500 firms from 2001–2019, we assess the relationship between CFO power and investment outcomes. Our results indicate that powerful CFOs tend to adopt conservative investment strategies, leading to underinvestment and negatively impacting investment efficiency. These results highlight the significant role of CFOs in shaping corporate investment policies and suggest that the power dynamics within the executive team can critically influence firm outcomes.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Powerful CFOs and investment efficiency

  • 期刊论文

  • 发表日期：

    2025年1月15日

查看全文
  • Md Kamrul Hasan Chy,
  • Obed Nana Buadi

摘要

We examine how powerful CFOs influence investment efficiency, addressing the gap in research on the role of CFO power in corporate financial decisions. Existing literature primarily focuses on CEO power, often highlighting its contribution to overinvestment, but the impact of CFO power is less understood. Using data from S&P 1500 firms from 2001–2019, we assess the relationship between CFO power and investment outcomes. Our results indicate that powerful CFOs tend to adopt conservative investment strategies, leading to underinvestment and negatively impacting investment efficiency. These results highlight the significant role of CFOs in shaping corporate investment policies and suggest that the power dynamics within the executive team can critically influence firm outcomes.