Financial Officers Research Articles

Board governance drivers of corporate sustainability levels in private firms: evidence from Sweden

PurposeThe purpose of this study is to investigate whether board composition affects corporate sustainability (CS) levels in private firms. Additionally, the study examines a potential interplay between CS levels and CS reporting, and the impact of EU Directive 2014 / 95/EU (Non-Financial Reporting Directive [NFRD]) on resources spent on CS.Design/methodology/approachThe authors surveyed the chief executive officers (CEOs), chief financial officers (CFOs) and Environment Officers of Swedish private firms subject to NFRD, receiving 149 valid responses (a response rate 24%). The authors coded the responses using van Marrewijk and Werre’s (2003) CS levels framework. The levels are Pre-CS, Compliance-driven, Profit-driven, Caring, Synergistic and Holistic. The study then explained the CS levels with board characteristics.FindingsWhile on average the sample firms have a profit-driven CS level, the authors find that CS level is positively driven by female Chairs, female CEOs and external CEOs. Early voluntary reporting before NFRD does not explain the CS level. On adoption of the NFRD, mandatory reporters increased resources spent on CS activities and CS reporting more than early voluntary-reporters. Nonetheless, slightly over half of the sample firms reported no significant impact of the NFRD on resources spent on CS.Practical implicationsThe findings may be useful for stakeholders interested in corporate governance and CS levels. Also, the findings support further regulation such as EU Directive 2022/2464 (Corporate Sustainability Reporting Directive [CSRD]).Social implicationsIn private firms, female leaders are likely to play a significant role in driving altruistically motivated CS practices.Originality/valueThe focus is on private firms in Sweden which, unlike those in other jurisdictions, were subject to NFRD. Methodologically, the use of a survey provides an alternative to the previous heavy reliance on archival research.

Quality of life and career success: how Invisalign transforms your smile and future

The Invisalign clear aligner system has been widely studied and debated regarding its effectiveness and advantages when compared to traditional fixed orthodontic appliances. The main attraction of Invisalign is its discreet aesthetics and the convenience it provides to patients, making it a popular choice among those seeking a more comfortable and less visible treatment. Invisalign treatment was extremely effective in the orthodontic treatment in this case. The patient was very happy with the ease of treatment in terms of aesthetics and oral hygiene, and she did not want to undergo any type of orthodontic treatment that was visible or involved brackets. She also reports that her more aligned teeth have impacted her quality of life and her professional career, enabling her to speak more assertively and overcoming her fear of interacting in the corporate world, being hired by a large multinational company to be CFO, Chief Financial Officer, because she overcame her fear of expressing herself. Therefore, Invisalign was able to treat a case of class 1 malocclusion in a patient who supposedly would not undergo any type of treatment, opening up the possibility of treating this type of patient who needs orthodontics, has purchasing power, but does not want conventional treatment. This can disrupt their personal and professional life. And in a much shorter time, in the case of 7 months of treatment with 14 aligners, whereas if we were to perform conventional orthodontic treatment, it would certainly take more than 2 years of treatment, due to the very crowded and misaligned lower teeth and the fact that there is no space to place lower brackets, prolonging the treatment and we would have to place resin in the occlusal region to be able to place the conventional orthodontic appliance, causing a series of chewing discomforts and possible breakage of the appliance, prolonging the treatment time. It is a treatment that changed the life of the patient, who was previously shy and afraid of speaking in public, to a more confident and certain person who can indeed change her life, as happened in this case and in so many others. The objective of this article is to demonstrate how a beautiful and aligned smile positively impacts the patient's quality of life and professional success.

An Assessment Of Financial Management In Selected Municipalities Within The Ngaka Modiri Molema District Council

This study investigates the poor financial performance of South African municipalities, which is often reflected in widespread disclaimer audit outcomes. The primary aim is to identify strategic financial management practices that can enhance the financial performance of municipalities within the NMMD Council. The Auditor General has pinpointed key vulnerabilities, namely procurement and irregular expenses, revenue management issues, and weaknesses in investment and asset management, all contributing to financial inefficiencies.Primary data was collected through semi-structured interviews with senior officers in selected NMMD municipalities using an exploratory case study design. The data was analyzed using NVivo 12 Pro. Key findings highlight the need for effective leadership and governance, emphasizing the importance of distributing power among financial officers to prevent fraud and corruption. Functional financial management systems, internal audit units, and effective audit committees are essential for sound financial management and governance. Addressing shortcomings in procurement processes and investing in human resource training is necessary to minimize non-compliance and enhance financial management. The study underscores the importance of continuous monitoring, risk management, and a zero-tolerance approach to corruption to ensure sustainable financial performance. Legal proceedings should address financial misconduct, with disciplinary actions taken against those found guilty. Municipalities will continue to fail unless consequence management is implemented and enforced.

Generalist CFO and corporate debt finance: evidence from the Chinese market

PurposeThis study examines the relationship between chief financial officer (CFO) general ability and corporate debt financing, using all Chinese listed companies as the sample. It has significant implications for corporate shareholders and investors. Companies aiming to increase the proportion of external capital should prioritise the CFO's general ability. Similarly, investors can consider this a valuable sign before making investment decisions.Design/methodology/approachThis study follows Custódio et al.'s (2013) approach to measuring the CFO general ability index (GAI) in five dimensions, while the D/E ratio is treated as the primary proxy of corporate debt financing. This study investigates the linear relationship between CFO general ability and corporate debt financing by using the ordinary least squares (OLS) regression with controlling year and industry fixed effect simultaneously.FindingsBased on a sample dataset of all listed firms in China from 2008 to 2023, this paper identifies a significant positive correlation between CFOs' general management skills and corporate debt financing. This finding underscores that generalist CFOs prefer debt financing over equity financing. The paper also suggests that corporate innovation could be a potential mechanism through which CFOs' comprehensive management skills influence debt financing.Originality/valueThis study expands upon prior research by establishing a positive correlation between generalist CFOs and debt financing. Previous studies investigating the influence of CFO demographic characteristics have predominantly concentrated on singular dimensions, such as educational background, varied professional experiences and career trajectories, often overlooking the significance of past work experience. Secondly, this paper enriches the financial literature by introducing a novel determinant that substantially impacts debt financing.

Evaluating the Role of AI in Grants Management: Integration and Adoption of Technology and Innovation

The integration of artificial intelligence (AI) into grant management has the potential to revolutionize how organizations handle the application process, budgeting, reporting, and stakeholder engagement. This qualitative study explores the experiences of grant managers, financial officers, and other stakeholders in adopting AI tools. Through interviews and thematic analysis, this research identifies the benefits, challenges, and implications of AI in the grant management process. The findings suggest that while AI can enhance efficiency and decision-making, successful integration requires careful planning, training, and change management.

NIL and Higher Education: An Exploration of the Early Impact of NIL on Fundraising and Competition in Universities and Athletic Departments

While there has been a large amount of discussion by the media and government officialsregarding the need for rules and regulations surrounding name, image, and likeness (NIL) incollege athletics, to date, there is a lack of research on the effects NIL has on higher educationfundraising. Thus, this study examines NIL's effects on university and athletic fundraising andfair competition among universities. In surveying chief financial officers and athletic departmentdirectors in Power and Non-Power universities, we aim to understand university officials’perceptions regarding the early impact NIL is having on higher education. The survey resultsoffer valuable guidance on the regulation of NIL to ensure that it benefits both universities andstudent-athletes.

Examining the Influence of Sustainable Management Accounting on Sustainable Corporate Governance: Empirical Evidence

This study, with its practical implications, is a valuable resource for organisations. It examines the impact of Sustainable Management Accounting (SMA) practices on the implementation and effectiveness of Sustainable Corporate Governance (SCG) within organisations. It also investigates the various dimensions of SMA and explores the mediating roles of the Internal Control System (ICS) in the relationships between SMA and SCG. The empirical data, collected from 512 individuals across India using a purposive sampling technique, represent a diverse cross-section of the population, including shareholders, investors, finance officers, executives, and professionals such as chartered accountants, lawyers, bankers, and company secretaries. The findings of this study are actionable, indicating that SMA has a positive and significant impact on SCG. Furthermore, it was found that SMA is influenced by factors such as the accounting system, reporting method, transparency policy, and stakeholder involvement. Moreover, the results suggest that companies with well-developed sustainable accounting systems have enhanced ICS and corporate governance metrics, which in turn result in improved board oversight and stakeholder engagement. Finally, the outcome of this study not only assists in developing sustainable corporate governance through sustainable accounting management but also contributes to the UN’s sustainable goals through accounting and governance in the corporate culture and approach.

The Economics of Capital Allocation in Firms: Evidence from Internal Capital Markets

We analyze a unique chief financial officer (CFO) survey data set to examine capital allocation in firms. Top management is aware of agency and information problems at the divisional level and organizes the budgeting process to counteract managerial opportunism, employing systems of interconnected measures, including layers of approval, divisional budgets, reporting requirements, and compensation schemes. When making funding decisions, top management relies heavily on top-level nonfinancial information, such as the assessment of divisional managers’ abilities. However, substantial parts of the capital budget do not require top management approval as firms trade off the benefits and costs of decentralization, thereby deviating from the traditional paradigm of decentralized project initiation but centralized project approval. Even firms with active internal capital markets tilt capital allocation toward relatively even distributions, reflecting the use of capital allocation as a credible communication device. We also find that within-firm agency problems may result in capital rationing, that is, divisions’ restricted access to internal capital. CFOs also believe that integrating multiple businesses into an internal capital market results in tangible financial benefits, predominantly lower costs of capital and higher debt capacities. Thus, our findings also support coinsurance arguments suggesting that internal capital markets may improve access to external financing. This paper was accepted by Victoria Ivashina, finance. Funding: This work was supported by the BBBank Karlsruhe, Wissenschaftsförderung der Sparkassen-Finanzgruppe, and Karlsruher Institut für Technologie (Karlsruhe House of Young Scientists). Publishing fees were supported by the “Funding Programme Open Access Publishing” of the University of Hohenheim. Supplemental Material: The online appendices and data files are available at https://doi.org/10.1287/mnsc.2021.02755 .

Challenges and Opportunities for CFOs in the Brazilian IT Sector

This study investigates the concerns and challenges influencing the performance frontiers of Chief Financial Officers (CFOs) in Brazilian IT companies. Given the complex and interpretative nature of the factors shaping a CFO's areas of action and role evolution, we opted for qualitative research methods. Specifically, Focus Groups will be employed to capture the nuances of these factors. Key findings pointed out four emerging themes: Mastering Hard Skills, Mastering Soft Skills, CFOs' concerns, and CFOs' challenges. Discussion and implications compile this article.

Factors influencing trade union fund collection to ensure social security for workers: Perspectives from Vietnamese trade union finance officers

The study aims to identify factors affecting the collection of trade union funds to enhance social security for employees. Data for the research were gathered through a survey of 768 trade union finance officers. The methods used included descriptive statistics, Cronbach's Alpha testing, and multivariate regression analysis. The findings reveal seven key factors that positively influence trade union fund collection: the financial policy system of the trade union, information technology, fund collection controls, coordination with ministries and relevant departments, the skills and capacity of trade union finance officers, support and awareness campaigns, and employers' compliance with union fee payments. Based on these results, the authors suggest recommendations to strengthen fund collection, ensuring sufficient financial resources for trade unions to effectively fulfill their roles and responsibilities.

The Influence of TAM, Perceived Risk, and Trust on the Financial Performance of Multi-finance Companies Utilizing GPS Tracker Applications

This study investigates the influence of the Technology Acceptance Model (TAM), perceived risk, and trust on the financial performance of multi-finance companies utilizing GPS tracker applications. As technology adoption in the multi-finance sector grows, understanding these factors becomes crucial for optimizing financial outcomes. A quantitative research design involved a cross-sectional survey of multi-finance companies using GPS tracker applications. Data were collected from 150 managers and financial officers through structured questionnaires. Structural Equation Modelling (SEM) was used to analyze the relationships between TAM constructs (perceived ease of use and perceived usefulness), perceived risk, trust, and financial performance. The results indicate that perceived ease of use and usefulness significantly enhance trust in GPS tracker applications, positively impacting financial performance. Conversely, perceived risk negatively moderates the relationship between trust and financial performance.

The Influence of Accountability, Transparency, and the Role of Village Apparatus on the Management of Village Revenue and Expenditure Budget

Finding out how local appliances, accountability, and openness affect revenue budget management and village purchases in Temanggung's Kedu area is the primary goal of this study. This research makes use of quantitative data, which is gathered from the responses of respondents via questionnaires that are sent out on the village devices. Eleven hundred and twelve people from fourteen different offices in the Kedu district participated in the survey, including the village chief, secretary, financial officer, planner, enterprise and general manager, and welfare officer. The survey was conducted in the district of Kedu. This research employs purposive sampling in its sampling procedures. Using SPSS, the researchers in this study conducted a double regression analysis on the collected data. The study's findings reveal that 1) accountability greatly benefits APBDes management, 2) transparency greatly benefits APBDes management, and 3) the administrator of APBDs is greatly influenced by the role of village authorities. The findings of the determination coefficient show that independent variables affect dependent variables by 71.9%, while other variables or factors impact the remaining 28.1%.

Are You a Supercommunicator?

I think all college and university administrators, including presidents, deans, faculty, admission and financial aid officers, student affairs deans, registrars, and alumni officers, could benefit from the advice of Charles Duhigg, presented in his book Supercommunicators.

Are you a supercommunicator?

I think all college and university administrators, including presidents, deans, faculty, admission and financial aid officers, student affairs deans, registrars, and alumni officers, could benefit from the advice of Charles Duhigg, presented in his book Supercommunicators.

CFO (Chief Financial Officer) Research: A Systematic Review Using the Bibliometric Toolbox

The chief financial officer (CFO) is a crucial executive position in an organisation, responsible for overseeing the financial operations and strategy of the company. Despite rising interest among academics and practitioners, the literature corpus on CFO research remains largely fragmented, which warrants the unpacking of the underlying intellectual knowledge structure of the domain. In response, this study aims to provide a concise overview of the trends and science relating to CFO research, comprehend potential gaps in the literature, and highlight crucial future research pathways. A quantitative bibliometric overview of 669 research articles from 1982 to 2022 provides a spectrum of intellectual clout that helps decipher performance trends and delineates six significant clusters of knowledge in CFO research. We selectively discuss the empirical findings and theoretical and conceptual advancements within each cluster. This study offers recommendations for future research, emphasising the growing role of CFOs in leadership and addressing the fragmentation in current research. The findings and contributions of this study could further elevate CFOs’ importance in the C-suite.

A GOVERNANÇA CORPORATIVA E SUAS CONTRIBUIÇÕES PARA AS FINANÇAS EMPRESARIAIS: A IMPORTÂNCIA DA GOVERNANÇA CORPORATIVA E DO CHIEF FINANCIAL OFFICER (CFO) PARA AS FINANÇAS EMPRESARIAIS

This article introduce a study about the diferents teories of Corporate Governance, Business Finance Management and Administration and the boss role of Chief Financial Officer (CFO) in strategic processes that contribute to financial resourse planning in organizations. It was a literature review of qualitative way, with the objective of identify the principals concepts about the subject of course taken and its applicability to proposed work. The study provided a conceptual analysis about Global Finance, allowing to identify the tools and metods used and it practical applicability to projects that envolve investment analysis and return to companies. Report about the principals responsabilities of financial manager and administrator represented for Chief Financial Officer (CFO), and his collaboration in strategic plan of organizations. The search it was made of exploratory form provided to get importants results that evidence generated changes in finance area through of Corporate Governance.

Moderating Role of Corporate Governance on the Effect of Innovation Investment to the Financial Performance among Publicly-listed Software Outsourcing Companies in China

This study examines the relationship between innovation investment, corporate governance, and financial performance among publicly listed software outsourcing companies in China. Utilizing a mixed methods approach, the research integrates quantitative analysis of financial and governance data with qualitative insights from structured interviews with Chief Financial Officers (CFOs). The study explores how various corporate governance factors, such as board size, independence, meeting frequency, CEO duality, and compensation, influence the effectiveness of innovation investments in enhancing company performance. Findings indicate that while there is a positive correlation between innovation investment and financial performance, the relationship is not statistically significant. Moreover, corporate governance factors, except for board size, do not significantly moderate this relationship. The results suggest that aligning innovation strategies with strong corporate governance practices is essential but not sufficient to ensure enhanced financial outcomes. The study's findings have practical implications for industry practitioners, policymakers, and investors, emphasizing the need for optimized governance structures to support sustainable growth in the software outsourcing sector. However, limitations regarding data reliance, sample size, and sectoral focus are acknowledged, with recommendations for future research to address these constraints and explore additional variables influencing the innovation-performance link.

Pénzügyőrök az Europolban A Nemzeti Adó- és Vámhivatal, valamint jogelődje a Vám- és Pénzügyőrség részvétele az Európai Rendőrségi Hivatal munkájában

Aim: To give an overview of the cooperation between Europol and the National Tax and Customs Administration. Methodology: The different areas of cooperation are presented by the authors based on the review of the available documents, the factual examination of the data and the experiences of conversations with liaison officers. Findings: The National Tax and Customs Administration and its legal predecessor, the Hungarian Customs and Financial Guard, have been participating in the work of Europol since 2002. During this period, it was constantly present with liaison officers in joint tasks. NTCA’s financial officers and investigators try to make full use of the support provided by Europol, but at the same time, given the global nature of serious international and organised crime, it is necessary to constantly examine the further possibilities inherent in cooperation. Value: The article adequately reviews and presents the relationship between the HCFG, later the NTCA and Europol, as well as the strategic and practical results resulting from it. During the interviews with the liaison officers, the authors got to know the practical aspects of the cooperation in depth and presented them in this article.

Financial guards at Europol. Participation of the National Tax and Customs Administration and its predecessor, the Hungarian Customs and Finance Guard in the workof the European Union Agencyfor Law Enforcement Cooperation

Aim: To give an overview of the cooperation between Europol and the National Tax and Customs Administration. Methodology: The different areas of cooperation are presented by the authors based on the review of the available documents, the factual examination of the data and the experiences of conversations with liaison officers. Findings: The National Tax and Customs Administration and its legal predecessor, the Hungarian Customs and Financial Guard, have been participating in the work of Europol since 2002. During this period, it was constantly present with liaison officers in joint tasks. NTCA’s financial officers and investigators try to make full use of the support provided by Europol, but at the same time, given the global nature of serious international and organised crime, it is necessary to constantly examine the further possibilities inherent in cooperation. Value: The article adequately reviews and presents the relationship between the HCFG, later the NTCA and Europol, as well as the strategic and practical results resulting from it. During the interviews with the liaison officers, the authors got to know the practical aspects of the cooperation in depth and presented them in this article.

The Relationship Between Chief Financial Officer Gender and Investment Efficiency

Objective: This study aims to examine the relationship between the gender of the chief financial officer (CFO) and the efficiency of corporate investment, especially over-investment. Methods: The independent variable is the gender of the CFO and the dependent variable is over-investment. The research method is correlation type and multivariate regression using panel data with a logistic regression model approach. The data of manufacturing companies in the Tehran Stock Exchange has been collected from 2017 to 2021. Results: The findings of the research show that the presence of a female financial manager is significantly related to the reduction of the company's over-investment level, so gender plays a role in the economic decision-making and investment of companies. Conclusion: Female chief financial managers are more risk-averse compared to male chief financial managers and consider the interests of shareholders in the company’s economic decisions. Therefore, companies should pay special attention to gender diversity at the level of company managers in making decisions and economic investments.