Abstract

This paper focuses on the relationship between Chief Financial Officers’ (CFO) characteristics and firm performance. Using a sample of S&P 500 firms, the evidence found suggests that the demographic and experience-related characteristics of CFOs as well as their compensation can be associated with their firms’ market valuation, profitability and risk level. The reported results indicate a negative relationship between the presence of female and firm valuation as well as profitability. Firms with an experienced CFO tend to have better performance and lower risk levels. CFOs with a master or higher educational degrees seem to have better risk management skills than their counterparts. Interestingly, some limited evidence indicates a negative relation between the CFO’s age and firm performance. In addition, being a CFO with a Certified Public Accountant (CPA) designation has not been found to significantly affect firm performance.