CFOs with CPAs skimp in growth industries
The Wall Street Journal - 04/21/2016
The study looked at how the two kinds of CFOs performed in high-growth industries, such as pharmaceuticals, electronics, and business services as well as low-growth industries, such as transportation, machinery and petroleum.
The upshot was that companies with accounting CFOs tended to be more risk averse. CFOs with accounting backgrounds in high-growth industries on average were associated with a 7.4% lower investment expenditure at their company and a 14.6% lower likelihood of financing. That might hurt growth.
Professor Rani Hoitash of Bentley University, his younger brother Udi Hoitash, an associate professor of Northeastern University, and assistant professor Ahmet Kurt of Suffolk University, examined a sample size of about 1,800 CFOs, looking at how they performed between 2000 and 2010.