May 16, 2024
As the CFO is the highest-ranking executive charged with producing financial information and the audit committee is the subset of the board charged with monitoring the financial reporting process, the relationship between these two parties is crucial for financial reporting.
In his latest research, Dr. Robert Felix, head of our Accounting Area in the Busch School of Business, examines the effect of political-ideological diversity between a company's CFO and its audit committee on financial reporting. This study, recently published by the Journal of Accounting and Public Policy, a leading academic journal, is, to our knowledge, the first piece of research to provide empirical evidence of the business benefits of viewpoint diversity.