Based on the related information disclosed in the annual report of SSE A-share, this paper makes an empirical analysis of the status and role of CFO in corporate governance. The result indicates that the status of CFO is low in corporate governance, and CFO still plays a traditional role. The result also demonstrates the main factors that determine the status and role of CFO are personal status and seniority. As a result, effective measures must be adopted to enhance the status and role of CFO from the perspective of corporate governance.
Key words: CFO, corporate governance, listed companies
Résumé: A partir des informations révélées dans le rapport annuel de l'action-A de la SSE( Shanghai Stock Exchange/Bourse des valeurs de Shanghai), l'article présent procède à une analyse empirique du statut et du rôle du CFO(Chief Financial Officer) dans la gouvernance de la société. Le résultat montre que le CFO jouit d'un statut bas dans la gouvernance de la société et joue encore un rôle traditionnel, et que les facteurs déterminant son statut et rôle sont ses statut personnel et ancienneté. A cet effet, des mesures effectives doivent être adoptées pour hausser le statut et le rôle du CFO dans la perspective de la gouvernance de la société.
Mots-Clés: CFO, gouvernance de la société, sociétés cotées
Modern corporate governance centers around financial governance, and its goal, to a large extent, is achieved through such kind of governance. As the person of the highest level responsible for the corporate's finance, CFO plays a very important part in the governance. Seen from the traditional financial role of CFO, he or she controls the accounting of the company and its organization as well as the cash and long term investment, thus he or she is the one who could coordinate the company's financial resources.3 Seen from the responsibilities in the corporate governance system, CFO has undertaken the responsibilities concerning managing, law, governance, morality, management, and the responsibilities internally entrusted to the share holders and those externally to the board.4 With the global development, CFO will function as a manager of strategic plans, resources, achievement evaluation, flow system and controlling,5 which is extremely important to elevate the value of share holders and to fulfill the corporate's target.6 Nowadays, the corporate governance structure in our country is not perfect: the ownership structure of the share is not reasonable, the biggest share holder dominates the stock market, the board's governance efficiency is insufficient, governance committee exists only in a nominal sense, external surveillance mechanism is not sound, all of which are sure to influence the role of CFO, hence his or her display of this role in the corporate. We hold that responsibilities should be seen as equal to the status and right, and that only on the basis of certain status and right, can CFO function well in the corporate. From empirical perspective, the present paper analyzes the status and role of CFO in the company in order to know the place and the status quo of CFO in our country, and to analyze the factors that influence his or her status and the display of the role, to offer the empirical evidence for the enhancement of CFO's role in our country.
1. THE DEFINITION AND DESCRIPTION OF VARIABLES
Item No9 in CFO Clauses stipulates that CFO shall assist the major corporate leaders by making decisions concerning activities of administrative institutions, such as production management, basic construction investment and so on. CFO shall participate in the drafting of the plans relating to the development of new products, innovation of technology, scientific research prices of value, salary and rewards, etc; shall take part in the research and check of grave economic contract and economic agreement. CFO shall undertake managing responsibilities as a decision maker, thus he or she must be involved in the making of major decisions, including the resolutions concerning innovation, managing, financing, investment, and allocation. …