The Effect of Nonprofit Governance on Donations: Evidence from the Revised Form 990

• 成果类型: Article
• 署名作者: Harris, Erica; Petrovits, Christine M.; Yetman, Michelle H.
• 署名单位: Rutgers University System; Rutgers University New Brunswick; Rutgers University Camden; William & Mary; University of California System; University of California Davis
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-50874
• 发表日期: 2015
• 页码: 579-610
• 关键词: CORPORATE GOVERNANCE; AGENCY; EFFICIENCY; OWNERSHIP; GOODS

摘要

We examine whether donors reward nonprofit organizations that report better governance. From a sample of 10,846 organizations from 2008 to 2010, we first identify seven nonprofit governance dimensions using factor analysis. We then test whether the quality of governance influences donor decisions by including the seven governance factors in the standard donor's demand model. We find consistent evidence that donations and government grants are positively associated with six of the seven factors that capture good governance, including formal written policies (e.g., conflict of interest), independent audits and audit committees, review and approval of executive compensation, board oversight (e.g., board independence), management characteristics (e.g., no related parties), and accessible financial information. Our results have implications for nonprofit managers and regulators. Moreover, mandatory disclosure of governance policies for nonprofit organizations provides an interesting contrast to mandatory adoption of governance policies for publicly traded companies.