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CFO 's accounting talent, compensation and turnover
Author(s) -
Loyeung Anna,
Matolcsy Zoltan
Publication year - 2015
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12085
Subject(s) - accounting , compensation (psychology) , business , officer , association (psychology) , psychology , political science , psychoanalysis , law , psychotherapist
This paper builds on and contributes to the literature on Chief Financial Officer's ( CFO ) compensation and turnover. We contend that the accounting talent of CFO s can be measured by accounting errors that occur when CFO s implement accounting standards. We find (i) a positive association between the CFO 's accounting talent and the CFO 's compensation ex ante in the transition year; (ii) a positive association between the CFO 's accounting talent and the CFO 's bonus in the subsequent year (adoption year); and (iii) an inverse association between the CFO 's accounting talent and CFO turnover in the subsequent year (adoption year).