A Theoretical Analysis on the Differences in the Role of the CFO in Family and Non-Family Businesses
Sprache des Vortragstitels:
35th Annual Congress of the European Accounting Association (EAA)
Sprache des Tagungstitel:
Practice-oriented publications have recently suggested a movement of the Chief Financial Officer's (CFO) role towards a more strategic role. In family businesses, the CFO position is often the first into which a non-family manager is hired. A non-family CFO is also able to safeguard the development of a family business in financial distress. However, the role of the non-family CFO in family businesses has been under-researched. Hence, this paper assesses previous research findings and investigates the role of the non-family CFO in family businesses compared with that in non-family businesses. Social role theory in connection with agency theory, stewardship theory and the resource-based view of the firm theory build the paper?s theoretical basis. The nine propositions in this paper suggest not only a more traditional role for non-family CFOs but also fewer monitoring efforts in family businesses compared with non-family businesses. The paper concludes with avenues for further research and potential future research questions.