Do Companies Pay CIOs More after the Adoption of International Financial Accounting Standards?

摘要

This study investigates the association between regulatory reporting change and Chief Information Officer (CIO) pay. Mandatory reporting standards change such as International Financial Reporting Standards (IFRS) calls for the increased information systems demand in order to provide satisfactory reporting quality. Anecdote evidence suggests that CIOs, who are responsible for managing information technology (IT) resources, should involve more in the conversion project to make sure the IT capital is well structured for meeting the new reporting requirements. The results show a significant increase in CIO pay in the post adoption period. Such pay increase varies from industries which have different levels of IT investments. Specifically, compared to IT firms, non-IT firms increase more CIO pay in the post adoption period. The results of this study shed lights on the implications for the role of CIO affected regarding to the relevant technological changes in the context of regulatory reporting reform.