The Relationship Between CFO Qualifications and Internal Control Weakness

Yaying C. Yeh; Chiulien C. Venezia; Tzu-Ya Yang

doi:10.2478/fiqf-2022-0010

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The Relationship Between CFO Qualifications and Internal Control Weakness

Financial Internet Quarterly

Volume 18 (2022): Issue 2 (June 2022)

By: Yaying C. Yeh , Chiulien C. Venezia and Tzu-Ya Yang

Open Access

|Jul 2022

Abstract

This study explores the relationship between CFO qualifications and a firm’s internal control weakness (ICWs). We use three measures for CFO competence: financial/accounting background, seniority, and education. Using a sample of Taiwanese listed firms from 2012 to 2015, the results of this study show a negative relationship between CFO financial/accounting background and seniority with internal control weakness, indicating firms with higher quality CFOs experience a lower number of ICWs. CFO education level, however, is not related with a firm’s internal control weakness. The results imply that capable CFOs can effectively implement a good internal system. The result of this study provides practical and policy implications.

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Articles in this issue

DOI: https://doi.org/10.2478/fiqf-2022-0010 | Journal eISSN: 2719-3454 (formerly 1734-039X)

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Language: English

Page range: 21 - 29

Submitted on: Mar 1, 2022

Accepted on: May 13, 2022

Published on: Jul 11, 2022

Published by: University of Information Technology and Management in Rzeszow

In partnership with: Paradigm Publishing Services

Keywords:

CFO qualification,

Financial Accounting background,

CFO competence,

Seniority,

Internal control weakness

JEL:

M4,

M12

Related subjects:

Business and economics,

Political economics,

Economic theory, systems and structures,

Microeconomics,

Macroeconomics,

Public finance and fiscal theory

© 2022 Yaying C. Yeh, Chiulien C. Venezia, Tzu-Ya Yang, published by University of Information Technology and Management in Rzeszow
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Volume 18 (2022): Issue 2 (June 2022)