The changing role of the CFO in selected large Maltese companies

Abstract

Purpose: The purpose of this study is to determine and evaluate the areas of change that have impacted the development of the role of the CFO in large local companies. Moreover, this study will assess how the CFO has adapted to meet the resulting changes. Recommendations for improvement will also be given. Design: The objectives of this study were achieved through the analysis of foreign and local literature and by conducting eleven semi-structured interviews with CFOs of selected large Maltese companies. Findings: The research found that CFOs are no longer bound to control-based accounting responsibilities but are expected to lead the organisation, side by side the CEO. Therefore, they are shifting their focus on more value-adding activities and venturing into different aspects of the business. The area that had the most impact on the role of the CFO was strategy followed by talent management, regulation, accounting reporting, technology, management and control techniques, risk management, stakeholder management and globalisation. Furthermore, it was determined that locally the role could be further enhanced with regards to emerging regulations, retaining talent and technological developments. Conclusion: This study concludes that the CFO has evolved into becoming a central figure for the organisation, which led to an increase in complexities in the fundamental aspects of the role. The modern-day CFOs are required to possess a blend of technical, business and behavioural competencies to assist them in successfully meeting stakeholders’ expectations. Implications/Value: This study hopes to increase awareness on the importance of the CFO’s role in an organisation as it explores the areas that are transforming the role into an enriching career. As a result, it elucidates the competencies required, the main challenges and how to overcome them. Finally, it provides recommendations that may potentially improve and strengthen the CFO’s role.