Journal article
Measuring Organization Capital for Nonprofit Foundations
Journal of international accounting research, pp 1-24
01 Jun 2025
Abstract
This study introduces a measure of organization capital for nonprofit foundations and uses it to predict their performance in generating future donations. Using financial and operational data from 3,531 unique nonprofit foundations in China from 2011 to 2021, we find that higher organization capital consistently leads to increased donations across various donor types over the subsequent three years. These findings indicate that organization capital persists over time and significantly affects the future performance of nonprofit foundations in attracting donations. Moreover, cross-sectional analyses reveal that organization capital plays a more prominent role in attracting donations when political connections are limited, revenue streams are diversified, and financial reporting quality is low. Additionally, we find that organization capital is not affected by CEO departures, suggesting that it represents an inherent organization-specific measure rather than a manager-specific characteristic.
JEL Classifications: M41; L31.
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Details
- Title
- Measuring Organization Capital for Nonprofit Foundations
- Creators
- Hsihui Chang - Drexel UniversityZhiming Ma - Peking UniversityWenyun Shi - Fudan UniversityHuayin Xiao - Shantou University
- Publication Details
- Journal of international accounting research, pp 1-24
- Publisher
- American Accounting Association
- Number of pages
- 24
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Web of Science ID
- WOS:001538258000001
- Other Identifier
- 991022061643504721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Business, Finance