The Moderating Effect of Audit Committee to Determinants of CFO Turnover

Abstract

The main purpose of this study is to investigate whether the audit committee and its related characteristics have moderating effect to the relationship between CFO turnover and its determinants Regarding the determinants of CFO turnover this study focuses on performance of the companies whether the companies got going-concern audit opinion in the last period and the quality of financial reporting which is measured by whether the companies happened restatement in the last period We use Logistic Regression to conduct empirical research on listed and over-the-counter (OTC) companies in Taiwan from 2006 to 2018 Finally the results suggest that: (1) the audit committee can strengthen the negative relationship between performance of the companies (annual rate of return on stock price) and CFO turnover in the next period (2) the average number of independent directors who concurrently serve as independent directors of other companies and total number of meetings held by audit committee during the year can strengthen the positive relationship between getting going-concern audit opinion and CFO turnover in the next period (3) the average number of independent directors who concurrently serve as independent directors of other companies number of financial or accounting experts and average attendance rate of the audit committee meeting can strengthen the positive relationship between restatement and CFO turnover in the next period (4) However the total number of meetings held by audit committee during the year can weaken the positive relationship between restatement and CFO turnover in the next period This study integrates the determinants of CFO turnover with audit committee and its related characteristics to make further research It can be a supplement to CFO turnover and audit committee literature

Date of Award	2020
Original language	English
Supervisor	Hua-Wei Huang (Supervisor)