We study CEO successions for S&P 1500 firms from 2003 to 2009 to investigate the factors that lead a firm to choose to appoint an individual with CFO experience as CEO and the impact of appointing a former CFO as CEO on the firms' financial reporting, disclosure, and tax policies. Consistent with the "fit-refit model, we find that selection of an ex-CFO as CEO is associated with higher demand for high quality financial information before the appointment and is generally followed by increases in the firms' accounting and disclosure quality after the appointment. Our study provides insight into the circumstances under which financial experience is valued in the top leadership position of the firm and sheds light as to the reasons underlying the documented effect of individual CEOs on a firm's accounting policies.
| Speaker: | Dr Steven Matsunaga Professor, University of Oregon (SMU, Cheng Tsang Man Chair Visiting Professor) |
| When: |
3.00 pm - 4.30 pm |
| Venue: | School of Accountancy [Map] Level 4, Meeting Room 4.1 |
| Contact: | Office of the Dean Email: SOAR@smu.edu.sg |