627
Views
0
CrossRef citations to date
0
Altmetric
Article

Do donors discount accounting information of nonprofits affiliated with for-profit firms?

, , , &
Pages 490-513 | Received 16 May 2020, Accepted 20 Sep 2020, Published online: 16 Oct 2020

References

  • Aggarwal, R. K., M. E. Evans, and D. Nanda. 2012. “Nonprofit Boards: Size, Performance and Managerial Incentives.” Journal of Accounting and Economics 53 (1–2): 466–487. doi:10.1016/j.jacceco.2011.08.001.
  • Almeida, H., C. S. Kim, and H. B. Kim. 2015. “Internal Capital Markets in Business Groups: Evidence from the Asian Financial Crisis.” The Journal of Finance 70 (6): 2539–2586. doi:10.1111/jofi.12309.
  • Arya, A., and B. Mittendorf. 2015. “Career Concerns and Accounting Performance Measures in Nonprofit Organizations.” Accounting, Organizations and Society 40: 1–12. doi:10.1016/j.aos.2014.10.002.
  • Bae, G. S., Y. S. Cheon, and J.-K. Kang. 2008. “Intragroup Propping: Evidence from the Stock-price Effects of Earnings Announcements by Korean Business Groups.” The Review of Financial Studies 21 (5): 2015–2060. doi:10.1093/rfs/hhn055.
  • Bae, K.-H., J.-K. Kang, and J.-M. Kim. 2002. “Tunneling or Value Added? Evidence from Mergers by Korean Business Groups.” The Journal of Finance 57 (6): 2695–2740. doi:10.1111/1540-6261.00510.
  • Baek, J.-S., J.-K. Kang, and I. Lee. 2006. “Business Groups and Tunneling: Evidence from Private Securities Offerings by Korean Chaebols.” The Journal of Finance 61 (5): 2415–2449. doi:10.1111/j.1540-6261.2006.01062.x.
  • Barber, B. M., and T. Odean. 2000. “Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors.” The Journal of Finance 55 (2): 773–806. doi:10.1111/0022-1082.00226.
  • Bhandari, S. B. 2010. “Ethical Dilemma of Nonprofits in the Agency Theory Framework.” Journal of Leadership, Accountability and Ethics 8 (2): 33–40.
  • Burgstahler, D. C., L. Hail, and C. Leuz. 2006. “The Importance of Reporting Incentives: Earnings Management in European Private and Public Firms.” The Accounting Review 81 (5): 983–1016. doi:10.2308/accr.2006.81.5.983.
  • Burks, J. J. 2015. “Accounting Errors in Nonprofit Organizations.” Accounting Horizons 29 (2): 341–361.
  • Callen, J. L., and H. Falk. 1993. “Agency and Efficiency in Nonprofit Organizations: The Case of “Specific Health Focus” Charities.” The Accounting Review 68 (1): 48–65.
  • Chang, S. J., and U. Choi. 1988. “Strategy, Structure and Performance of Korean Business Groups: A Transactions Cost Approach.” Journal of Industrial Economics 37 (2): 141–158. doi:10.2307/2098561.
  • Chang, S. J., and J. Hong. 2000. “Economic Performance of Group Affiliated Companies in Korea: Intragroup Resource Sharing and Internal Business Transactions.” Academy of Management Journal 43: 429–448.
  • Core, J. E., W. R. Guay, and R. S. Verdi. 2006. “Agency Problems of Excess Endowment Holdings in Not-for-profit Firms.” Journal of Accounting and Economics 41 (3): 307–333. doi:10.1016/j.jacceco.2006.02.001.
  • Cornforth, C. 2012. “Nonprofit Governance Research: Limitations of the Focus on Boards and Suggestions for New Directions.” Nonprofit and Voluntary Sector Quarterly 41 (6): 1116–1135. doi:10.1177/0899764011427959.
  • Desai, M. A., and R. J. Yetman. 2015. “Constraining Managers without Owners: Governance of the Not-for-profit Enterprise.” Journal of Governmental & Nonprofit Accounting 4 (1): 53–72. doi:10.2308/ogna-51138.
  • Du Bois, C., R. Caers, M. Jegers, C. Schepers, S. De Gieter, and R. Pepermans. 2004. “Agency Problems and Unrelated Business Income of Non-profit Organizations: An Empirical Analysis.” Applied Economics 36 (20): 2317–2326. doi:10.1080/0003684042000281552.
  • Fama, E. F., and M. C. Jensen. 1983. “Separation of Ownership and Control.” Journal of Law & Economics 26 (2): 301–325. doi:10.1086/467037.
  • Fan, J. P. H., and T. J. Wong. 2002. “Corporate Ownership Structure and the Informativeness of Accounting Earnings in East Asia.” Journal of Accounting and Economics 33: 401–425. doi:10.1016/S0165-4101(02)00047-2.
  • Gaver, J. J., and S. M. Im. 2014. “Funding Sources and Excess CEO Compensation in Not-for-profit Organizations.” Accounting Horizons 28 (1): 1–16. doi:10.2308/acch-50588.
  • Glaeser, E. L. 2003. The Governance of Not-For-Profit Organizations. Chicago, IL: University of Chicago Press.
  • Gore, A. K. 2009. “Why Do Cities Hoard Cash? Determinants and Implications of Municipal Cash Holdings.” The Accounting Review 84 (1): 183–207. doi:10.2308/accr.2009.84.1.183.
  • Habib, A., and I. Azim. 2008. “Corporate Governance and the Value-relevance of Accounting Information: Evidence from Australia.” Accounting Research Journal 21 (2): 167–194. doi:10.1108/10309610810905944.
  • Hall, M., and B. O’Dwyer. 2017. “Accounting, Non-governmental Organizations and Civil Society: The Importance of Nonprofit Organizations to Understanding Accounting, Organizations and Society.” Accounting, Organizations and Society 63: 1–5. doi:10.1016/j.aos.2017.11.001.
  • Hansmann, H. 1990. “Why Do Universities Have Endowments?” Journal of Legal Studies 19: 3–42. doi:10.1086/467841.
  • Hansmann, H. B. 1996. The Ownership of Enterprise. 1st ed. Cambridge, MA: Belknap Press.
  • Harris, E., C. M. Petrovits, and M. H. Yetman. 2015. “The Effect of Nonprofit Governance on Donations: Evidence from the Revised Form 990.” The Accounting Review 90 (2): 579–610. doi:10.2308/accr-50874.
  • Harris, J. F., and A. Klepper. 1977. “Corporate Philanthropic Public Service Activities.” Research Papers Sponsored by the Commission on Private Philanthropy and Public Needs 3: 1741–1788. Washington, D.C.: U.S. Department of the Treasury.
  • Hartzell, J. C., and L. T. Starks. 2003. “Institutional Investors and Executive Compensation.” The Journal of Finance 58 (6): 2351–2374. doi:10.1046/j.1540-6261.2003.00608.x.
  • Herzlinger, R. E. 1996. “Can Public Trust in Nonprofits and Governments Be Restored?” Harvard Business Review 74 (2): 97–107.
  • Iyer, V. M., and A. L. Watkins. 2008. “Adoption of Sarbanes-Oxley Measures by Nonprofit Organizations: An Empirical Study.” Accounting Horizons 22 (3): 255–277. doi:10.2308/acch.2008.22.3.255.
  • Jensen, M. C., and W. H. Meckling. 1976. “Theory of the Firm: Managerial Behavior Agency Costs and Ownership Structure.” Journal of Financial Economics 3: 305–360. doi:10.1016/0304-405X(76)90026-X.
  • Jobome, G. O. 2006. “Public Funding, Governance and Passthrough Efficiency in Large UK Charities.” Corporate Governance: An International Review 14 (1): 43–59. doi:10.1111/j.1467-8683.2006.00483.x.
  • Jones, C. L., and A. A. Roberts. 2006. “Management of Financial Information in Charitable Organizations: The Case of Joint-cost Allocations.” The Accounting Review 81 (1): 159–178. doi:10.2308/accr.2006.81.1.159.
  • Kennedy, P. 2008. A Guide to Econometrics. 6th ed. Malden, MA: Blackwell Publishing.
  • Khumawala, S. B., L. M. Parsons, and T. P. Gordon. 2005. “Assessing the Quality of Not-for-profit Efficiency Ratios: Do Donors Use Joint Cost Allocation Disclosures?” Journal of Accounting, Auditing & Finance 20 (3): 287–309. doi:10.1177/0148558X0502000305.
  • Kim, B., J. Pae, and C.-Y. Yoo. 2019. “Business Groups and Tunneling: Evidence from Corporate Charitable Contributions by Korean Companies.” Journal of Business Ethics 154 (3): 643–666. doi:10.1007/s10551-016-3415-0.
  • Kitching, K. 2009. “Audit Value and Charitable Organizations.” Journal of Accounting and Public Policy 28 (6): 510–524. doi:10.1016/j.jaccpubpol.2009.08.005.
  • Krishnan, R., M. H. Yetman, and R. J. Yetman. 2006. “Expense Misreporting in Nonprofit Organizations.” The Accounting Review 81 (2): 399–420. doi:10.2308/accr.2006.81.2.399.
  • Lee, S. J., S. O. Park, and W.-O. Jung. 2018. “Earnings Management by Controlling Shareholders Who Plan for Stock Gifts: Korean Evidence.” Asia-Pacific Journal of Accounting & Economics 25 (3–4): 313–329. doi:10.1080/16081625.2017.1322909.
  • Masulis, R. W., and S. W. Reza. 2014. “Agency Problems of Corporate Philanthropy.” Review of Financial Studies 28 (2): 592–636. doi:10.1093/rfs/hhu082.
  • Okten, C., and B. A. Weisbrod. 2000. “Determinants of Donations in Private Nonprofit Markets.” Journal of Public Economics 75 (2): 255–272. doi:10.1016/S0047-2727(99)00066-3.
  • Olson, D. E. 2000. “Agency Theory in the Not-for-profit Sector: Its Role at Independent Colleges.” Nonprofit and Voluntary Sector Quarterly 29 (2): 280–296.
  • Parsons, L. M. 2003. “Is Accounting Information from Nonprofit Organizations Useful to Donors? A Review of Charitable Giving and Value-relevance.” Journal of Accounting Literature 22: 104–129.
  • Petra, S. T. 2007. “The Effects of Corporate Governance on the Informativeness of Earnings.” Economics of Governance 8: 129–152. doi:10.1007/s10101-006-0018-8.
  • Pfeffer, J., and G. Salancik. 2003. The External Control of Organizations: A Resource Dependence Perspective. Stanford, CA: Stanford University Press.
  • Posnett, J., and T. Sandler. 1989. “Demand for Charity Donations in Private Non-profit Markets: The Case of the U.K.” Journal of Public Economics 40: 187–200. doi:10.1016/0047-2727(89)90002-9.
  • Putterman, L. 1993. “Ownership and the Nature of the Firm.” Journal of Comparative Economics 17: 243–263. doi:10.1006/jcec.1993.1025.
  • Shleifer, A., and R. W. Vishny. 1986. “Large Shareholders and Corporate Control.” Journal of Political Economy 94 (3): 461–488. doi:10.1086/261385.
  • Steinberg, R., and B. H. Gray. 1993. “The Role of the Nonprofit Enterprise in 1993: Hansmann Revisited.” Nonprofit and Voluntary Sector Quarterly 22 (4): 297–316. doi:10.1177/0899764093224004.
  • Tate, S. L. 2007. “Auditor Change and Auditor Choice in Nonprofit Organizations.” Auditing: A Journal of Practice & Theory 26 (1): 47–70. doi:10.2308/aud.2007.26.1.47.
  • Tinkelman, D. 1998. “Differences in Sensitivity of Financial Statement Users to Joint Cost Allocations: The Case of Nonprofit Organizations.” Journal of Accounting, Auditing & Finance 13 (4): 377–393.
  • Vermeer, T. E., K. Raghunandan, and D. A. Forgione. 2006. “The Composition of Nonprofit Audit Committees.” Accounting Horizons 20 (1): 75–90. doi:10.2308/acch.2006.20.1.75.
  • Webb, T. Z., and T. R. Waymire. 2016. “Large Sample Evidence of the Determinants of Nonprofit Monitoring Costs: A Resource Dependence Framework.” Journal of Governmental & Nonprofit Accounting 5 (1): 25–52.
  • Weisbrod, A., and D. Dominguez. 1986. “Demand for Collective Goods in Private Nonprofit Markets: Can Fundraising Expenditures Help Overcome Free-rider Behavior?” Journal of Public Economics 30: 83–95. doi:10.1016/0047-2727(86)90078-2.
  • Yeo, G. H. H., P. M. S. Tan, K. W. Ho, and -S.-S. Chen. 2002. “Corporate Ownership Structure and the Informativeness of Earnings.” Journal of Business, Finance and Accounting 29: 1023–1046. doi:10.1111/1468-5957.00460.
  • Yermack, D. 2009. “Deductio’ Ad Absurdum: CEOs Donating Their Own Stock to Their Own Family Foundations.” Journal of Financial Economics 94 (1): 107–123. doi:10.1016/j.jfineco.2008.12.002.
  • Yetman, M. H., and R. J. Yetman. 2012. “The Effects of Governance on the Accuracy of Charitable Expenses Reported by Nonprofit Organizations.” Contemporary Accounting Research 29 (3): 738–767.
  • Yetman, M. H., and R. J. Yetman. 2013. “Do Donors Discount Low-quality Accounting Information?” The Accounting Review 88 (3): 1041–1067. doi:10.2308/accr-50367.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.