Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/56694 
Year of Publication: 
2012
Series/Report no.: 
SFB 649 Discussion Paper No. 2012-021
Publisher: 
Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk, Berlin
Abstract: 
Research on functional members of top management teams (TMTs) has increasingly drawn interest to the strategic management field over the past few years. Studies have documented the rise of the chief financial officer (CFO) to pivotal importance and considerable power within the organization. By adopting a contingency perspective and drawing on the coalitional view of the firm, we investigate whether and when a relatively powerful CFO in the TMT is beneficial to firm performance. Multi-source panel data on 292 US firms over the five-year period from 2006 to 2010 revealed that the positive impact of powerful CFOs on performance is strengthened by the degree of unrelated diversification and the firm's tendency toward Defender-type strategies but not by its degree of internationalization.
Subjects: 
power/resource dependency theory
top management team
finance function
chief financial officer
organizational politics and power
diversification
generic business level strategies
internationalization
panel data analysis
JEL: 
G30
M10
Document Type: 
Working Paper

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