The Impact of CEO Compensation on Nonprofit Donations

• 成果类型: Article
• 署名作者: Balsam, Steven; Harris, Erica E.
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; Rutgers University System; Rutgers University New Brunswick; Rutgers University Camden
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-50631
• 发表日期: 2014
• 页码: 425-450
• 关键词: determinants; management; QUALITY; price

摘要

In this paper we show that supporters reduce donations to nonprofits subsequent to disclosure of high executive compensation. We find evidence consistent with large, sophisticated donors actively seeking out and reacting to compensation information made available in IRS Form 990, while smaller donors react to compensation disclosures in the media. Additional analysis indicates that these results vary systematically across nonprofits, as we find a stronger negative relation in nonprofits classified as more charitable, and a weaker relation in nonprofits that provide services to their donors. In contrast neither grantors nor patrons appear to react to executive compensation disclosures.