The changing role of the CFO in Maltese listed companies

Abstract

The purpose of this study is to understand how the role of the CFO of Maltese listed companies has changed over the past ten years while assessing the major changes. Moreover, it gives a recommendation on the competencies CFOs require to effectively adapt to their new role. Design: The objectives were achieved through data collected from foreign and local literature and through ten semi-structured interviews with CFOs of Maltese listed companies. Findings: This study found that the role of the CFO has changed into a more rewarding and fulfilling one mainly because CFOs are now being more involved in the strategic management of the business. The major area of change was that of time pressures, followed by corporate culture and the control environment, flexibility and adaptability, complexity and bureaucracy, accountability and transparency, risk management, centralisation, training and CFO/CEO and Board relationship. Conclusion: This study concludes that as CFOs are not being seen as mere number crunchers but more as business partners, they need to develop a set of competencies that will help them become business strategists. By enhancing their ability to self-manage, to plan, to build the right team and to communicate, CFOs will form a solid basis to eventually venture into entrepreneurship and to successfully meet the expectations of their new role. Value: It is hoped that this study will increase CFO's awareness on the importance of enhancing their management skills to further develop their role. This study aims to serve as a practical guide on how to strengthen the competencies required to suit the changing role and to potentially help reduce the pressures that such changes have created.