CFO’s ‘Street-Fear’ & Innovation
Accountants & CFOs are trained to think conservatively. They swear by one of the important convention in accounting – recognize all possible losses but recognize gains only when it happens.
Innovation, especially the disruptive type calls for big money and the payoffs are not immediate. This then creates a balance sheet issue which the Street, focused on quarterly results does not take sympathetically. Such risks do create a lot of negativity among analysts & investors. The CFO ‘Street-Fear’ is for real.
So do Accountants/CFOs stifle innovation? How is that over the past decade disruptive innovations have actually happened?
GR Advisory & Training 