Professional trust in CFOs as providers of decision-making information

Abstract

Purpose : The purpose of this study is to identify the key qualities that influence trust in CFOs, and the approaches adopted by CFOs to maintain trust in their role with the selected departments. Additionally, the study aims to examine the main challenges faced in sustaining trust, and opportunities for strengthening trust in CFOs. Design : A qualitative research approach was adopted to achieve the research objectives, involving twelve semi-structured interviews. Participants included top managers from the Marketing and HR departments, and CFOs all drawn from four companies falling within the medium to large-sized category operating in different industries, where decision-making takes place in Malta. Findings : The findings revealed that trust in CFOs within medium and large companies in Malta is generally high, influenced by the CFO’s personal qualities and behaviours, such as transparency, effective communication, and ethical behaviour. Additionally, the findings reveal that trust is not automatically granted but developed through consistent engagement with departmental managers and transparency. Findings highlight challenges to sustaining trust, including misaligned departmental objectives and perceptions of CFOs as uncooperative. Nonetheless, opportunities to strengthen trust in the CFO were noted, particularly through open communication, and leadership visibility through the inclusion of the finance team. Conclusion : This study concludes that professional trust in CFOs is built on more than financial expertise, with transparency, effective communication, and leadership playing an important role. Trust in CFOs requires ongoing effort to sustain within organisations. As CFOs take on broader responsibilities, maintaining professional trust will be key to supporting effective decision-making and organisational success. Value : This study provides valuable insights into the factors that influence professional trust in CFOs within medium and large companies. The study highlights the qualities and behaviours of CFOs that influence trust in their role, the approaches, challenges, and opportunities associated with sustaining and strengthening trust in CFOs.