A Theoretical Analysis on the Differences in the Role of the CFO in Family and Non-Family Businesses

Description

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.

Period	11 May 2012
Event title	35th Annual Congress of the European Accounting Association (EAA)
Event type	Conference
Location	SloveniaShow on map