EFFECT OF GOVERNANCE DIMENSIONS ON RECEIVING DONATIONS LINKED TO ENVIRONMENTAL NGOS IN BRAZIL
DOI:
https://doi.org/10.14392/asaa.2021140106Keywords:
Governança, Terceiro setor, Organizações não governamentais, Teoria da agência, Doações.Abstract
Objective: This study aimed to analyze the effect of a set governance dimensions on donations with
donor restrictions received by Non-Governmental Organizations (NGOs) in Brazil, under the agency
theory perspective.
Method: The study sample consisted randomly of 108 environmental NGOs operating in Brazil, and the data were obtained through document survey or direct contact. The data were analyzed using Multiple Correspondence Analysis and Multiple Linear Regression.
Results: We first identify six governance dimensions (Board, Fiscal Council, Transparency, Management, Audit and Accountability) using Multiple Correspondence Analysis. We then identified through Multiple Linear Regression that four (Management, Accountability, Transparency and Audit) of the six dimensions of governance are positively associated with donations with donor restrictions.
Contribuition: The findings of the study indicate that there are significant implications of the quality of governance for environmental NGO executives, for it points out that donors could make use of NGO governance information if it were better publicized.
Downloads
References
Abouassi, K., & Trent, D. L. (2016). NGO accountability from an NGO perspective: perceptions, strategies, and practices. Public Administration and Development, 36(4), 283–296.
Aggarwal, R. K., Evans, M. E., & Nanda, D. (2012). Nonprofit boards: size, performance and managerial incentives. Journal of Accounting and Economics, 53(1–2), 466–487.
Análise Editorial. (2015). Atuação ampliada e transparência. Análise Gestão Ambiental 2013/2014, pp. 214–219.
Ávila, L. A. C. de, & Bertero, C. O. (2016). Governança no terceiro setor: um estudo de caso em uma fundação de apoio universitário. Revista Brasileira de Gestão de Negócios, 18(59), 125–144.
Balsam, S., Harris, E. E., & Saxton, G. D. (2020). The use and consequences of perquisite types in nonprofit organizations. Journal of accounting and public policy, 39(4), 1-19.
Bekkers, R., & Wiepking, P. (2011). A literature review of empirical studies of philanthropy: eight mechanisms that drive charitable giving. Nonprofit and Voluntary Sector Quarterly, 40(5), 924–973
Blouin, M. C., Lee, R. L., & Erickson, G. S. (2018). The impact of online financial disclosure and donations in nonprofits. Journal of Nonprofit & Public Sector Marketing, 30(3), 252-266.
Bortolon, P. M., Silva, L. S., & Barros, L. A. B. de C. (2019). Ativismo e solicitação de instalação do Conselho Fiscal: influência do monitoramento, desempenho e estrutura de propriedade. Revista Contabilidade, Gestão e Governança, 22(2), 216–279.
Cabedo, J. D., Fuertes-Fuertes, I., Maset-Llaudes, A., & Tirado-Beltrán, J. M. (2018). Improving and measuring transparency in NGOs: a disclosure index for activities and projects. Nonprofit Management & Leadership, 28(3), 329–348.
Cadbury Committee. (1992). The financial aspects of corporate governance. London, UK: Committee on the Financial Aspects of Corporate Governance.
Castell, R. B. (1966). The scree test for the number of factors. Multivariate Behavioral Research, 1(1), 245–276.
Cohen, J. (2003). A power primer. In A. E. Kazdin (Ed.). Methodological Issues & Strategies in Clinical Research (pp. 427-436). Washington, DC: APA.
Cnaan, R. A., Jones, K., Dickin, A., & Salamon, M. (2011). Nonprofit watchdogs: do they serve the average donor? Nonprofit Management & Leadership, 21(4), 381–397.
Dall’Agnol, C. F., Tondolo, R. da R. P., Tondolo, V. A. G., & Sarquis, A. B. (2017). Transparência e prestação de contas na mobilização de recursos no terceiro setor: um estudo de casos múltiplos realizado no Sul do Brasil. Revista Universo Contábil, 13(2), 187–203.
Desai, M. A., & Yetman, R. J. (2015). Constraining Managers without Owners: Governance of the Not-for-Profit Enterprise. Journal of Governmental & Nonprofit Accounting, 4(1), 53–72.
Diallo, A., & Thuillier, D. (2004). The success dimensions of international development projects: The perceptions of African project coordinators. International Journal of Project Management, 22(1), 19–31.
Durnev, A., & Kim, E. H. (2005). To steal or not to steal: firm attributes, legal environment and valuation. Journal of Finance, 60(3), 1461–1493.
Eisenhardt, K. M. (1989). Agency Theory: an assessment and review. Academy of Management Review, 14(1), 57–74.
Fama, E. F. (1980). Agency problems and the theory of the firm. Journal of Political Economy, 88(2), 288–307.
Fredette, C., & Bradshaw, P. (2012). Social capital and nonprofit governance effectiveness. Nonprofit Management & Leadership, 4(2), 391–409
Glaeser, E. L. (2003). Introduction. In E. L. Glaeser (Ed.), The governance of not-for-profit organizations (pp. 01-43). Chicago, IL: University of Chicago Press.
Greiling, D., & Stötzer, S. (2015). Performance accountability as a driver for changes in nonprofit-government relationships: an empirical insight from Austria. International Journal of Voluntary and Nonprofit Organizations, 26(5), 1690–1717.
Gujarati, D. N. (2000). Econometria básica. São Paulo, SP: Makron Books.
Harris, E., Petrovits, C. M., & Yetman, M. H. (2015). The effect of nonprofit governance on donations: evidence from the revised form 990. The Accounting Review, 90(2), 579–610.
Haski-Leventhal, D., & Foot, C. (2016). The relationship between disclosure and household donations to nonprofit organizations in Australia. Nonprofit and Voluntary Sector Quarterly, 45(5), 992–1012.
Hasnan, S., Mohamad, M., Zainuddin, Z. N., & Abidin, Z. Z. (2016). Corporate governance factors affecting donation: evidence from charitable organizations in Malaysia. International Journal of Economics and Financial Issues, 6(Special Issue), 149–153.
Hedge, K. K., Nico, E., & Fox, L. (2009). Advancing good governance: how grantmakers invest in the governance of nonprofit organizations. Washington, DC: BoardSource.
Ho, S. J., & Huange, C. L. (2020). Managerial altruism and governance in charitable donations. Managerial and decision econmics, 38(7), 1058-1068.
Horn, J. L. (1965). A rationale and technique for estimating the number of factors in factor analysis. Psychometrika, 30(1), 179–185.
Instituto Brasileiro de Geografia e Estatística. (2012). As fundações privadas e associações sem fins lucrativos no Brasil 2010. Rio de Janeiro, RJ: IBGE.
Instituto Brasileiro de Governança Corporativa. (2016). Guia das Melhores Práticas para organizações do terceiro setor: associações e fundações. São Paulo, SP: IBGC.
Instituto de Pesquisas Econômicas Aplicadas (2018). Perfil das organizações da sociedade civil no Brasil. Brasília, DF: IPEA.
Instituto de Pesquisas Econômicas Aplicadas (2019). Mapa das organizações da sociedade civil. Recuperado de https://mapaosc.ipea.gov.br.
Jensen, M. C. (1993). The modern industrial revolution, exit, and the failure of internal control systems. Journal of Finance, 48(3), 831–880.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360.
Jensen, M. C., & Meckling, W. H. (1994). The nature of man. Journal of Applied Corporate Finance, 7(2), 4-19.
Kitching, K. (2009). Audit value and charitable organizations. Journal of Accounting and Public Policy, 28(6), 510–524.
Lacruz, A. J. (2014). Gestão de projetos no terceiro setor: uma proposta de metodologia para associações e fundações privadas sem fins lucrativos. Mundo Project Management, 57, 34–40.
Lacruz, A. J., Moura, R. L. de, & Rosa, A. R. (2019). Organizing in the shadow of donors: how donations market regulates the governance practices of sponsored projects in non-governmental organizations. Brazilian Administration Review, 16(3), 1–23.
Lacruz, A. J. (no prelo). Considerações teóricas sobre governança corporativa no terceiro setor à luz da teoria da agência. Cadernos EBAPE.BR. Recuperado de http://bibliotecadigital.fgv.br/ojs/index.php/cadernosebape/article/view/81227/77575
Larcker, D. F. Richardson, S. A., & Tuna, I. (2007). Corporate governance, accounting outcomes, and organizational performance. The Accounting Review, 82(4), 963–1008
Lee, Y.-J. (2016). What encourages nonprofits adoption of good governance policies? Nonprofit Management & Leadership, 27(1), 95–112.
Lee, J. E., & Choi, A. (2019). The effects of financial reporting transparency and high-quality audit on donations to non-profit organizations: evidence from Korean charitable organizations. Journal of the Korea Convergence Society, 10(11), 227-238
Lei n. 13.587, de 02 de janeiro de 2018. (2018). Estima a receita e fixa a despesa da União para o exercício financeiro de 2018. Recuperado de http://www.planejamento.gov.br/assuntos/orcamento-1/orcamentos-anuais/2018/loa-2018/lei-no-13587-de-2-de-janeiro-de-2018.pdf.
Miles, J., & Shevlin, M. (2001). Applying regression and correlation: a guide for students and researchers. London, UK: Sage.
Petrovits, C., Shakespeare, C., & Shih, A. (2011). The causes and consequences of internal control problems in nonprofit organizations. The Accounting Review, 86(1), 325–357.
Santos, C. M. V. dos, Ohayon, P., & Pimenta, M. M. (2017). Disclosure via website e as características das empresas do terceiro setor: um estudo empírico das entidades cariocas. Advances in Scientific and Applied Accounting, 10(1), 73–90.
Saxton, G. D., & Guo, C. (2011). Accountability online: Understanding the Web-based accountability practices of nonproft organizations. Nonprofit and Voluntary Sector Quarterly, 40(2), 270–295.
Saxton, G. D., Neely, D. G., & Guo, C. (2014). Web disclosure and the market for charitable contributions. Journal of Accounting and Public Policy, 33(2), 127–144.
Singh, A., & Ingdal, N. (2007). A discussion paper on donor best practices towards NGOs in Nepal. Retrieved from http://www.niaslinc.dk/gateway_to_asia/nordic_webpublications/x506033324.pdf
Tacon, R., Walters, G., & Cornforth, C. (2017). Accountability in nonprofit governance: a process-based study. Nonprofit and Voluntary Sector Quarterly, 46(4), 685–704.
van der Heijden, H. (2013). Charities in competition: effects of accounting information on donating adjustments. Behavioral Research in Accounting, 25(1), 1–13.
Varotti, F. de P., & Malaia, J. M. (2016). A prática da governança corporativa e sua influência para os stakeholders envolvidos no desenvolvimento de um projeto esportivo do SESI-SP. Podium sport, leisure and tourism review, 5(1), 1–17.
Waniak-Michalak, H., & Zarzycka, E. (2012). Performance measurement of public benefit organisations on the basis of information from financial statements and its influence on their results. Zeszyty Teoretyczne Rachunkowości, 68(124), 147–160.
Watts, R. L., & Zimmerman, J. L. (1978). Towards a positive theory of the determination of accounting standards. The Accounting Review, 53(1), 112–134.
Yetman, M. H., & Yetman, R. J. (2012). The effects of governance on the accuracy of charitable expenses reported by nonprofit organizations. Contemporary Accounting Research, 29(3), 738-767.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Advances in Scientific and Applied Accounting
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright for articles published in the ASAA Journal is held by the author, with first publication rights to the journal. By virtue of appearing in this publicly accessible journal, the articles are free to use, with their own attributions, in educational and non-commercial applications. The ASAA Journal will allow the use of published works for non-commercial purposes, including the right to submit the work to publicly accessible databases. Published articles are the authors' full and exclusive responsibility. There are no submission/publishing charges or fees for processing articles (APC).
