The Impact of CFO's Professional Ethics Ability on the Corporate Performance Volatility

Abstract

This article selects the data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2010 to 2018, based on the perspective of professional morality compliance and career concerns, study that CFO's professional ethics ability affect the corporate performance volatility. The results showed that CFO's professional ethics ability is negatively related to the performance volatility, namely the CFO's professional ethics ability stronger, the lower the corporate performance volatility. Further study found that CEO's authority to CFO's professional ethics ability and the correlation between corporate performance volatility weaken effect; Compared with non-state-owned enterprises, the influence of CFO's professional ethics ability on the corporate performance volatility will be significantly higher than that of non-state-owned. Studies have shown that CFO's professional ethics ability is the important factors that affect the corporate performance volatility. The research conclusions can enrich and improve the corporate governance structure, accelerate the reform of China's CFO system, build the basic framework of the CFO system, and effectively exert the corporate governance effect.