79% of Global CFOs Say Investors Increasingly Demand Long-Term Value Information

EY Survey of 800 Chief Financial Officers Worldwide

[Asia Economy Reporter Ji-hwan Park] Eight out of ten Chief Financial Officers (CFOs) of global companies revealed that investors' interest and demands for long-term value creation are increasing.

According to global accounting and consulting firm EY Hanyoung on the 10th, 79% of senior financial executives of global companies stated that investors are demanding more information on long-term value creation plans for all stakeholders, including shareholders. EY recently conducted a survey of 800 senior financial executives worldwide, including CFOs and finance heads.

Global CFOs recognized that their role is becoming increasingly important in reshaping the future of companies after COVID-19. Eighty-six percent of respondents said CFOs should protect the current value of the company while promoting sustainable growth. In particular, eight out of ten (82%) emphasized that the market's view of CFOs as 'guardians' of long-term value is spreading.

As part of long-term value creation, the new task of overseeing Digital Transformation is expected to become a key responsibility for CFOs. The need for CFOs to strengthen collaboration with other C-level executives during this process was also mentioned. In this survey, 52% of CFOs expressed that their level of collaboration with Chief Human Resources Officers (CHROs) is limited or nonexistent.

Myles Corson, Global Strategy and Market Leader of EY's Financial Accounting Advisory Services (FAAS), explained, "Financial professionals must establish a foundation for enterprise-wide value creation that reflects the contribution of corporate assets such as talent, brand, innovation, and culture to long-term value creation," adding, "Integrating financial and non-financial performance is an essential duty of financial professionals."

Furthermore, the majority of global financial experts predicted that a more open, future-oriented finance function will become a reality within the next five years. More than three-quarters (77%) of survey respondents expected that by 2025, financial management IT systems will shift from 'on-premise' to 'cloud-native' platforms. This means that financial systems and operations will change to a cloud-friendly approach that does not rely on company-installed internal servers. Seventy-four percent answered that corporate finance functions will be incorporated into blockchain-based environments.

Leader Myles Corson emphasized, "Senior financial officers must look beyond immediate problem-solving or the short-term future," and added, "The perception of finance as a risk-averse, cost-management-centered function will now be considered outdated thinking."

This content was produced with the assistance of AI translation services.