Accountant CFO, Earning Quality, and Firm Performance: Evidence from Thailand
Post by MSF Chula at Monday, 27 August 2018 04:31 PM

The purpose of this paper is to examine the association of accountant CFO with level of earning quality and firm performance of the listed companies in the stock exchange of Thailand (SET) from year 2007 to 2016. The result from the testing shows that accountant CFO is positively associated with earning quality in the following year. Interestingly, the result also shows that accountant CEO has more influence on enhancing earning quality of the company than accountant CFO. This suggests that accounting knowledge and risk-averse behavior can improve the earning quality of the company. In terms of firm performance, our result shows that in overall accountant CFO can improve market-based firm performance of the company measured by Tobin’s Q. However, when we classify firms into low-growth and high-growth firms, there is no significantly different relationship between accountant CFO and non-accountant CFO with firm performance which is in contrast with the result of Hoitash et al. (2016).

Last updated at Monday, 27 August 2018 04:31 PM