The effect of technological advancements on CFOs of Maltese listed entities

Abstract

PURPOSE: This study seeks to analyse the effect of technological advancements on Chief Financial Officers (CFOs) and their subordinate functions, in the context of Maltese Listed Entities (MLEs). This study also analyses how the CFO role has changed due to technological implementation. Furthermore, it analyses also how technology has transformed the day-to-day operations of the finance and regulatory functions. Finally, the study aims to provide insight and recommendations into future developments that CFOs and accountants may consider. DESIGN: The objectives of the research were achieved through a qualitative approach, with eleven semi-structured interviews being held with CFOs operating within existing MLEs. FINDINGS: The study found that technology has transformed the role of the CFO. Due to technological implementations, the CFO has managed to move away from his bookkeeping role and focus on adding value to the business. This necessitates a higher understanding of the company, requiring the CFO to continuously upskill himself with ongoing technological advancements to add value. This has resulted in the automation of several processes, leading to increased efficiency and a reduction in errors. Moreover, the regulatory function has increased in importance due to greater regulatory pressure, with CFOs opting to implement technologies to reduce the burden of regulation. CONCLUSION: This study concludes that CFOs have successfully made use of the advantages available to them through technological investments. This demonstrates that a proper foundation for technological implementation is in place. However, CFOs must not become complacent and must continuously invest in upskilling themselves to harness technological advancements to remain relevant. VALUE: This study has provided insight into how CFOs may use technological advancements to improve a firm’s processes and functions, fulfilling the transition from a bookkeeping role to a value-adding role.