Asset impairments surrounding chief financial officer turnover

Bugeja, M; Spiller, M; Spiropoulos, H; Wells, P

Asset impairments surrounding chief financial officer turnover

Bugeja, M

Spiller, M Spiropoulos, H

Wells, P

Permalink

Publisher:: SAGE PUBLICATIONS LTD
Publication Type:: Journal Article
Citation:: Australian Journal of Management, 2024
Issue Date:: 2024-01-01

Open Access

Copyright Clearance Process

Recently Added
In Progress
Open Access

This item is open access.

Adobe PDF

Download Accepted versionAdobe PDF (622.13 kB)

Adobe PDF

Download full textAdobe PDF (381.41 kB)

View on publisher's site

View statistics

Full metadata record

Field	Value	Language
dc.contributor.author	Bugeja, M https://orcid.org/0000-0002-1941-5092
dc.contributor.author	Spiller, M
dc.contributor.author	Spiropoulos, H https://orcid.org/0000-0002-7748-6577
dc.contributor.author	Wells, P https://orcid.org/0000-0001-6822-4826
dc.date.accessioned	2024-10-08T22:04:12Z
dc.date.available	2024-10-08T22:04:12Z
dc.date.issued	2024-01-01
dc.identifier.citation	Australian Journal of Management, 2024
dc.identifier.issn	0312-8962
dc.identifier.issn	1327-2020
dc.identifier.uri	http://hdl.handle.net/10453/181244
dc.description.abstract	We examine the effect of chief financial officer (CFO) turnover on the likelihood and size of asset impairments. Using Australian data, we find evidence consistent with incoming CFOs recording larger asset impairments, particularly when they are external hires with prior listed experience, or receive equity-based compensation. Our results also indicate that outgoing CFOs report higher profits in the year prior to their departure by reporting fewer and smaller asset impairments. This effect is larger when outgoing CFOs move to another listed firm or receive equity-based compensation, consistent with reputational and compensation incentives to maximise earnings. Overall, our results provide evidence of the independent influence CFOs have on financial reporting. JEL Classification: M41, G34, M40
dc.language	English
dc.publisher	SAGE PUBLICATIONS LTD
dc.relation.ispartof	Australian Journal of Management
dc.relation.isbasedon	10.1177/03128962241270757
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	15 Commerce, Management, Tourism and Services
dc.subject.classification	35 Commerce, management, tourism and services
dc.title	Asset impairments surrounding chief financial officer turnover
dc.type	Journal Article
utslib.for	15 Commerce, Management, Tourism and Services
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
pubs.organisational-group	University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access	*
dc.rights.license	This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). To view a copy of this license, visit https://creativecommons.org/licenses/by/4.0/
dc.date.updated	2024-10-08T22:04:10Z
pubs.publication-status	Published

Abstract:

We examine the effect of chief financial officer (CFO) turnover on the likelihood and size of asset impairments. Using Australian data, we find evidence consistent with incoming CFOs recording larger asset impairments, particularly when they are external hires with prior listed experience, or receive equity-based compensation. Our results also indicate that outgoing CFOs report higher profits in the year prior to their departure by reporting fewer and smaller asset impairments. This effect is larger when outgoing CFOs move to another listed firm or receive equity-based compensation, consistent with reputational and compensation incentives to maximise earnings. Overall, our results provide evidence of the independent influence CFOs have on financial reporting. JEL Classification: M41, G34, M40

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/181244