Accounting Seminar（2016-08）

Topic: The Benefits of CFO to Corporate Information Environment: Evidence from CFO Gap

Speaker: Na Li, Singapore Management University

Time: Friday, June 3, 10:00-11:30

Place: Room219, Guanghua Building 1

Abstract:

This paper examines the benefit of CFO to firms’ information environment using the setting of CFO gap. We focus on CFO gap quarters, defined as the quarters between CFO departures and new CFO appointments during which firms do not have an official CFO on the earnings announcement day. We find that CFO gap quarters are significantly associated with adverse changes in firms’ information environment. Specifically, we find that during CFO gap quarters, 1)firms are less likely to issue management earnings forecasts; 2) firms issue more optimistic management forecasts; 3) analyst forecasts are less accurate; and 4) analyst forecasts are more dispersed. In addition, we find that operating uncertainty and CEO’s lack of financial expertise aggravate the negative impact of CFO gap quarters.

Introduction:

Dr Li Na is an Assistant Professor of Accounting at the Singapore Management University. Prior to joining SMU, she received her PhD in Accounting from the Rotman School of Management, University of Toronto in 2014, MA in Economics and MS in Accounting from Kent State University (USA), and BA in Accounting from DUFE (China). Her research interests include economic consequences of accounting standards, convertible bonds, debt contracting, corporate governance, executive compensation, and taxation.

//www.smu.edu.sg/faculty/profile/109611/Na-LI