Voluntary Financial Disclosure to Downward Stakeholders: An Empirical Examination of Chinese Nonprofits. Issue 1 (2nd January 2020)

• Record Type: Journal Article
• Authors: Hu, Ming; Zhu, Jiangang; Kong, Dejie
• Is Part Of: Public performance & management review. Volume 43:Issue 1(2020)
• Page Start: 180
• Page End: 205
• Publication Date: 2020-01-02
• Subjects: Chinese nonprofit organizations -- downward accountability -- financial disclosure -- nonprofit accountability -- nonprofit stakeholders; Civil service -- Labor productivity -- Periodicals; Civil service -- Labor productivity -- United States -- Periodicals; Government productivity -- Periodicals; Government productivity -- United States -- Periodicals; Public administration -- Periodicals; Public administration -- United States -- Periodicals; Civil service -- Labor productivity; Government productivity; Public administration; United States; Periodicals; 351.05
• DOI: 10.1080/15309576.2019.1601573
• Languages: English
• ISSNs: 1530-9576

Abstract

Abstract: Downward financial disclosure in the nonprofit sector is little scrutinized in the extant literature where most studies focus on financial disclosure "upward" to regulators, governing bodies, and donors. Analyzing a sample of 311 nonprofits collected in China, this article examines the determinants of nonprofits' financial disclosure downward to their staff, beneficiaries, and the general public. The authors claim that in addition to the four sets of factors—organizational strategy, capacity, governance, and environment—organizational culture also affects nonprofits' voluntary financial disclosure. In addition, there are different decision-making patterns of financial disclosure to the three downward stakeholders. While disclosure to staff is associated with strategy and internal governance, disclosure to beneficiaries is associated with internal governance, and disclosure to the general public is associated with strategy, capacity, and organizational culture.