scholarly journals The mechanisms of governance in nonprofit organizations

2007 ◽  
Vol 4 (2) ◽  
pp. 83-88
Author(s):  
Cláudio Machado Filho ◽  
Adalberto Fischmann ◽  
Luciana Rocha de Mendonça ◽  
Sandra Guerra
Keyword(s):  
Nonprofit Organizations ◽  
Agency Theory ◽  
Theoretical Framework ◽  
Governance Mechanisms ◽  
Internal Governance ◽  
For Profit ◽  
Internal Governance Mechanisms ◽  
The Relationship ◽  
Performance Comparisons ◽  
For Profit Organizations

This paper discusses the governance issues in nonprofit organizations (NPO). The theoretical framework of agency theory is used to analyze the relationship between agents and principals (donors and volunteers) in such kinds of organizations. Similarly to the for-profit organizations, the mechanisms of incentives and monitoring are crucial to the alignment of interests among principals and agents. However, considering the NPO’s intrinsic characteristics, due to the difficulty to implement external and internal governance mechanisms, the challenges of alignment are far more complicated. The NPOs are idiosyncratic, being in many situations complex to establish performance comparisons with similar organizations

scholarly journals Relationship between firm ownership and performance: the mediating role of internal governance mechanisms

2008 ◽  
Vol 5 (4) ◽  
pp. 461-470
Author(s):  
Kwang Sing Ngui ◽  
Mung Ling Voon ◽  
Ee Yaw Seng ◽  
Ai Ling Lim
Keyword(s):  
Structural Equation ◽  
Empirical Support ◽  
Governance Mechanisms ◽  
Internal Governance ◽  
Mediating Role ◽  
Equation Modelling ◽  
Internal Governance Mechanisms ◽  
And Performance ◽  
The Relationship

This paper explores the role of selected internal governance mechanisms as mediators of the relationship between ownership and firm performance. Data from 2004 and 2005 was gathered from 177 firms listed on Bursa Malaysia. Structural equation modelling was used as the primary statistical analysis approach. Insiders and blockholders were found to compete for board dominance. Selected internal governance mechanisms mediate the effect of ownership on performance, suggesting that these were used to advance the investment interests of insiders/ blockholders. The paper provides empirical support for the interest-alignment hypothesis, arguing that the use of governance mechanisms that align the interest of managers and shareholders are more effective than monitoring mechanisms

Perception of Internal Controls Helps Explain Whistleblowing

2021 ◽  
pp. 089976402110176
Author(s):  
Andrea M. Scheetz ◽  
Tonya D. W. Smalls ◽  
Joseph Wall ◽  
Aaron B. Wilson
Keyword(s):  
Nonprofit Organizations ◽  
Internal Control ◽  
Nonprofit Sector ◽  
Internal Controls ◽  
For Profit ◽  
Organization Framework ◽  
The Relationship ◽  
Control Implementation ◽  
Three Components ◽  
For Profit Organizations

The nonprofit sector may suffer financially from inconsistency in regulations and polices surrounding internal control implementation. To address this issue, our study explores how perceived internal control strength differs between nonprofit and for-profit organizations. Furthermore, we examine three components of the Committee of Sponsoring Organization framework to determine which components might significantly influence whistleblowing for nonprofit organizations. As expected, all three components appear to significantly influence whistleblowing for those in for-profit organizations. For those in nonprofit organizations, the perception of control activities and monitoring activities significantly mediates the relationship between organization type and whistleblowing intentions. Finally, the data indicate that the use of an anonymous website for whistleblowing at a nonprofit organization may require added attention and resources if employees at nonprofits are to use this outlet to the same extent as it is used at a for-profit organization.

The mediating effect of dividend payout on the relationship between internal governance and free cash flow

2018 ◽  
Vol 18 (4) ◽  
pp. 748-770 ◽  
Author(s):  
Moncef Guizani
Keyword(s):  
Corporate Governance ◽  
Cash Flow ◽  
Free Cash Flow ◽  
Mediating Effect ◽  
Governance Mechanisms ◽  
Internal Governance ◽  
Dividend Payout ◽  
Content Type ◽  
Internal Governance Mechanisms ◽  
The Relationship

PurposeThis paper aims to examine the mediating effect of dividend payout on the relationship between internal governance mechanisms (board of directors and ownership structure) and the free cash flow level.Design/methodology/approachLinear regression models are used to investigate such relationships applying data from a sample of 207 non-financial firms listed on the Gulf Cooperation Council countries’ stock markets between 2009 and 2016. To test the significance of mediating effect, the author uses the Sobel test.FindingsThe author finds a partial mediation effect of dividend on the relationship between both board independence and managerial ownership and the level of free cash flow. The results confirm the major role of outside directors in corporate governance. This governance mechanism contributes to the protection of shareholders’ interests through a generous dividend policy. However, the author finds that large managerial shareholdings increase the level of free cash flow through lower dividend payouts. This result suggests that powerful managers follow their preference of retaining excess cash to their own interests.Practical implicationsThis paper offers insights to policy-makers of emerging economies interested in the development of the corporate governance. This study provides guidance for firms in the construction and implementation of their own corporate governance policies.Originality/valueThe main contribution of the present paper is to examine the dividend payout as a potential mediating variable between internal governance mechanisms and free cash flow. Moreover, it highlights the issue of efficient management of substantial funds inSharia-compliant and non-Sharia-compliant firms.

scholarly journals The Relationship between Working Capital Management and Financial Sustainability of Selected Christian Denominations in Ghana

2019 ◽  
Vol 5 (2) ◽  
pp. 20
Author(s):  
Williams Kwasi Peprah ◽  
Isaac Anowuo ◽  
Daniel Adofo Kwakye Ameyaw
Keyword(s):  
Significant Relationship ◽  
Positive Relationship ◽  
Financial Sustainability ◽  
Working Capital ◽  
Current Ratio ◽  
For Profit ◽  
Not For Profit ◽  
The Relationship ◽  
Not For Profit Organizations ◽  
For Profit Organizations

Management of working capital is a fundamental aspect of finance. This is because it affects the church's liquidity and financial sustainability. The study sort of establishing the relationship between working capital and financial sustainability for selected Christian denominations in Ghana. Using bivariate correlation application in SPSS 23, the financial statements from 2013 to 2017 of 15 Christian Council of Ghana denominational members conveniently sampled and analyzed. Working capital is represented by liquidity ratios of current ratio, and cash ratio and financial sustainability are epitomized by self-support. The study revealed that there was a positive relationship between working capital and financial sustainability among Christian denomination in Ghana. In a detailed outcome, there was a statistically small positive significant relationship between self-support and cash ratio and statistically large positive significant relationship between self-support and current ratio. The study recommends to churches in Ghana to seek an enhancing relationship between their working capital and financial sustainability to prevent a possible closure of the church. Not-for-profit organizations must seek self-support through income generation and diversification to improve their Liquidity. Again, not-for-profit organizations must have a positive relationship between working capital and financial sustainability in that churches exist because of liquidity.

An investigation of the relation between ownership structure and management control in professional service organisations

2019 ◽  
Vol 15 (1) ◽  
pp. 147-168 ◽  
Author(s):  
Robyn King ◽  
Peter Clarkson
Keyword(s):  
Ownership Structure ◽  
Empirical Support ◽  
Professional Services ◽  
Management Control ◽  
Professional Service ◽  
Governance Mechanisms ◽  
Internal Governance ◽  
Content Type ◽  
High Performing ◽  
Internal Governance Mechanisms

PurposeThis study aims to examine the interplay between ownership structure (organisational form) and management control system (MCS) design as governance structures within Australian primary health-care organisations (PHOs), seeking support for the suggestion that professional services will be most efficiently and effectively provided in organisations that have internal governance that is matched to their ownership form.Design/methodology/approachThe analysis is based on a series of in-depth investigations into the MCS choices made by seven Australian PHOs. Arguing that the degree of information impactedness is inversely related to the level of general practitioner (GP) ownership, organisations where more than 50 per cent of the GPs working within the practice are owners are classified as “high ownership” (“low information impactedness”). The adoption by high-performing organisations of their predicted MCS archetype according to Speklé’s development is then interpreted as representing empirical support.FindingsThe findings provide uniform support for the importance of the match between ownership structure and internal governance mechanisms. As predicted, the two high-performing, high member-owned organisations reported MCS resembling exploratory archetypes, the three high-performing, low member-owned organisations reported MCS consistent with a boundary archetype and the two low-performing organisations reported little emphasis on any control.Research limitations/implicationsThis study provides evidence of the importance of the appropriate match between ownership structure and internal governance mechanisms for PHOs.Practical implicationsThis study has potential to assist managers, owners and advisors to optimise MCS design in professional services organisations where there is heterogeneous ownership by professionals.Originality/valueThis study is one of the few attempts to provide empirical support for the assertion of the importance of a match between ownership structure and MCS design. It also represents one of the few attempts to provide empirical support for Speklé’s (2001) control archetypes, here the boundary and exploratory archetypes, archetypes that are applicable within important sectors of the economy, notably the professional services sector.

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