CHIEF FINANCIAL OFFICER ATTRIBUTES, SUPPLY CHAIN FINANCE, AND FIRM PERFORMANCE: EVIDENCE FROM PAKISTAN
Abstract
This study examines how Chief Financial Officer (CFO) characteristics and supply chain finance (SCF) practices affect firm performance by integrating Upper Echelons Theory with the Resource-Based View. Using panel data from 1,324 firm-year observations of non-financial companies listed on the Pakistan Stock Exchange, the study applies Ordinary Least Squares and Two-Stage Least Squares methods to improve robustness and control for endogeneity. The findings indicate that CFO industry experience positively influences accounting-based performance measures, particularly return on assets and return on equity, highlighting the value of managerial expertise in strategic decision-making. Other CFO traits, including tenure, educational background, and professional networks, show limited impact. In contrast, SCF practices display stronger and more consistent effects. Aggressive investment policies and higher liquidity improve financial performance, while shorter cash conversion cycles enhance operational efficiency but reduce market valuation. Overall, SCF mechanisms appear more influential than most managerial attributes in strengthening firm outcomes.
Keywords: CFO attributes, supply chain finance, financial performance, ROE, ROA, Tobin’s Q.
