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Bean counter or strategist? Differences in the role of the CFO in family and non-family businesses

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  • Hiebl, Martin R.W.

Abstract

Practice-oriented publications have recently suggested a movement in the Chief Financial Officer's (CFO) role towards a more strategic role. In a family business, the CFO position is often the first into which a non-family manager is hired. However, the role of the non-family CFO in a family business is underresearched. Hence, this article uses previous findings as well as social role theory, agency theory, stewardship theory, and the resource-based view to investigate the role of the non-family CFO in family businesses compared to that in non-family businesses. Nine propositions are developed, which suggest not only a more traditional role for CFOs in family businesses, but also fewer monitoring efforts for the CFO in this setting. The article concludes with avenues for further research and concrete future research questions.

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  • Hiebl, Martin R.W., 2013. "Bean counter or strategist? Differences in the role of the CFO in family and non-family businesses," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 147-161.
    • Handle: RePEc:eee:fambus:v:4:y:2013:i:2:p:147-161
    DOI: 10.1016/j.jfbs.2013.02.003
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    3. Martin Hiebl, 2014. "Upper echelons theory in management accounting and control research," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(3), pages 223-240, January.
    4. Martin R.W. Hiebl & Zhen Li, 2020. "Non-family managers in family firms: review, integrative framework and future research agenda," Review of Managerial Science, Springer, vol. 14(4), pages 763-807, August.
    5. Chung, Hsi-Mei & Dahms, Sven, 2018. "Ownership Strategy and Foreign Affiliate Performance in Multinational Family Business Groups: A Double-edged Sword," Journal of International Management, Elsevier, vol. 24(4), pages 303-316.
    6. Martínez Franco, Carmen & Feeney, Orla & Quinn, Martin & Hiebl, Martin R.W., 2017. "Position practices of the present-day CFO: A reflection on historic roles at Guinness, 1920–1945," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 20(1), pages 55-62.
    7. Martin R. W. Hiebl & Barbara Mayrleitner, 2019. "Professionalization of management accounting in family firms: the impact of family members," Review of Managerial Science, Springer, vol. 13(5), pages 1037-1068, November.
    8. Daniel Magalhães Mucci & Ann Jorissen & Fabio Frezatti & Diógenes de Souza Bido, 2021. "Managerial Controls in Private Family Firms: The Influence of a Family’s Decision Premises," Sustainability, MDPI, vol. 13(4), pages 1-21, February.

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