Auditor Change and Auditor Choice in Nonprofit Organizations

2007 ◽  
Vol 26 (1) ◽  
pp. 47-70 ◽  
Author(s):  
Stefanie L. Tate
Keyword(s):  
Nonprofit Organizations ◽  
Public Support ◽  
Auditor Choice ◽  
Factors Associated ◽  
For Profit ◽  
Sarbanes Oxley ◽  
Audit Fee ◽  
Auditor Change ◽  
Operational Structure

As a result of the recent frauds and the U.S. Congress's passing of the Sarbanes-Oxley Act of 2002, more focus has been placed on the role of independent auditors in monitoring corporations. While the new rules are not directed toward nonprofit organizations, these organizations face many of the same monitoring concerns as their for-profit counterparts. Given their large reliance on public support through donations, it is imperative they maintain adequate levels of monitoring. This study looks at nonprofit organizations' auditor choice decisions—the factors associated with their decision to change auditors and the factors associated with the auditor selected if a change is made. Using multivariate regressions on data on almost 16,000 nonprofit organizations, I find changes in operational structure, management's reputation, and audit fee are all significant in determining whether an organization will change auditors. In addition, changes in operational structure, financing, and management contracting may have some effect on the type of auditor selected when a change is made.

Are Audit-Related Factors Associated with Financial Reporting Quality in Nonprofit Organizations?

2017 ◽  
Vol 37 (1) ◽  
pp. 49-68 ◽  
Author(s):  
Sarah A. Garven ◽  
Amanda W. Beck ◽  
Linda M. Parsons
Keyword(s):  
Nonprofit Organizations ◽  
Financial Reporting ◽  
Reporting Quality ◽  
Audit Fees ◽  
Financial Reporting Quality ◽  
Related Factors ◽  
Factors Associated ◽  
For Profit ◽  
Sarbanes Oxley ◽  
Positive Effect

SUMMARY We examine the effects of several audit-related factors on nonprofit financial reporting quality (FRQ). Using four different measures of FRQ, we demonstrate that the findings of nonprofit accounting research might be sensitive to the choice of FRQ proxy. Nonetheless, we consistently find that specialist auditors and unexplained audit fees have a significant positive effect on FRQ in nonprofit organizations. Interestingly, we observe changes to FRQ in the period after the Sarbanes-Oxley Act of 2002, despite the fact that the legislation does not apply to nonprofit audits. In fact, the results suggest nonprofits selected less-obvious methods of ratio management post-SOX, compared to pre-SOX. Finally, we do not find that Big N auditors consistently provide the highest quality, a result very different from for-profit studies.

The Role of Web Assurance Seals in Nonprofit Giving

2019 ◽  
Vol 34 (2) ◽  
pp. 131-148
Author(s):  
Joseph Canada ◽  
Erica E. Harris
Keyword(s):  
Nonprofit Organizations ◽  
Positive Relationship ◽  
Data Availability ◽  
Charitable Contributions ◽  
The Public ◽  
For Profit ◽  
Donor Support ◽  
The U.S ◽  
The Web

ABSTRACT Using a sample of the 2,000 largest nonprofit organizations in the U.S., we document that the use of web assurance seals is not as commonplace as for-profit e-commerce websites. In particular, we find that only about 14 percent of sample organizations invest in web assurance seals. Those that do provide web seals are larger, less efficient, and spend more on fundraising and information technology. Interestingly, however, our size result weakens for the very largest organizations in our sample. In addition to our contribution to the web assurance literature, we also contribute to donations research in identifying another feature important to donors in the decision to give. Specifically, we find a positive relationship between web seals and donations, indicating that providing this type of assurance attracts more donor support. We believe this is particularly interesting given the relatively few organizations adopting this type of signal in the marketplace for charitable contributions. Data Availability: Data are available from the public sources cited in the text.

scholarly journals Regulatory Spillovers in Common Audit Markets

2020 ◽  
Vol 66 (8) ◽  
pp. 3389-3411 ◽  
Author(s):  
Raphael Duguay ◽  
Michael Minnis ◽  
Andrew Sutherland
Keyword(s):  
Nonprofit Organizations ◽  
Private Companies ◽  
Demand Shock ◽  
Financial Reports ◽  
Public Companies ◽  
Audit Market ◽  
Sarbanes Oxley ◽  
Long Run ◽  
Audit Fee ◽  
Short Run

We find that Sarbanes–Oxley (SOX) had two significant effects on the audit market for nonpublic entities. The first short-run effect stems from inelastic labor supply coupled with an audit demand shock from public companies. As a result, private companies reduced their use of attested financial reports in bank financing by 12%, and audit fee increases for nonprofit organizations (NPOs) more than doubled. The second long-run effect was a transformation in the audit supply structure. After SOX, NPOs were less likely to match with auditors most exposed to public companies, whereas auditors increasingly specialized their offices based on client type. Audit market concentration for NPOs dropped by more than one-half within five years of SOX and remained at this level through the end of our sample in 2013, whereas the number of suppliers increased by 26%. Our results demonstrate how regulation directed at public companies generates economically important spillovers for nonpublic entities. This paper was accepted by Suraj Srinivasan, accounting.

scholarly journals The Role of Nonprofit–Private Collaboration for Nonprofits’ Organizational Resilience

2021 ◽  
Author(s):  
Rebecca Waerder ◽  
Simon Thimmel ◽  
Benedikt Englert ◽  
Bernd Helmig
Keyword(s):  
Nonprofit Organizations ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Organizational Resilience ◽  
Term Survival ◽  
Emotional Challenges ◽  
For Profit

AbstractGrowing social, political, and economic uncertainties have shown that organizational resilience is becoming increasingly important for nonprofit organizations (NPOs). To ensure their long-term survival, NPOs need to respond to extreme events and adapt their services and processes. The theoretical premise of resource dependence theory assumes that interactions between an organization and its environment are crucial for the long-term adaptation to adversities. The present study investigates the contributions of nonprofit–private collaborations to organizational resilience of NPOs in light of the refugee crisis in Germany in 2015. Findings from a multiple holistic case study design indicate that collaborations of nonprofits with for-profit organizations support NPOs with stability, resources, expertise, and compassion to overcome resource-based, conceptual, and emotional challenges.

scholarly journals Celebrity Endorsement for Nonprofit Organizations: The Role of Experience-based Fit between Celebrity and Cause

2016 ◽  
Vol 10 (1) ◽  
pp. 8
Author(s):  
Sun-Young Park
Keyword(s):  
Nonprofit Organizations ◽  
Nonprofit Organization ◽  
Nonprofit Sector ◽  
Theoretical Explanation ◽  
For Profit ◽  
Not For Profit ◽  
Potential Benefits ◽  
Social Cause ◽  
Social Causes

Although using celebrities to raise awareness and funds for social causes is a popular technique these days, little research has offered a theoretical explanation for the effects of a celebrity’s personal values on socially oriented communications. This paper, therefore, aims to investigate the role of celebrity experience with a cause, as well as the celebrity endorser’s association with the not-for-profit organizations, in determining the effectiveness of the celebrity’s endorsement of the cause. Results reveal that a celebrity’s personal experience with the endorsed cause positively influences consumers’ perceived congruence between the celebrity and the cause, attributions of the celebrity altruistic motives for the endorsement, perceptions of the celebrity credibility, and attitudes toward the celebrity and the nonprofit organization. Additionally, a celebrity associated with an organization as a founder compared to a spokesperson appears to yield more favorable perceptions of celebrity credibility and attitudes toward the celebrity and the organization. Finally, interesting interaction effects between the celebrity-cause fit and the celebrity’s association with the nonprofit organization emerged. Findings of the present study provide insights into the potential benefits and liabilities of using a celebrity to promote a social cause in the nonprofit sector.

scholarly journals The Role of Human Resource Strategies and Practices in Developing Intellectual Capital for Innovation in Nonprofit Organizations

2013 ◽  
pp. 174-194 ◽  
Author(s):  
Eric Kong
Keyword(s):  
Nonprofit Organizations ◽  
Human Resource ◽  
Intellectual Capital ◽  
Public Management ◽  
New Public Management ◽  
Nonprofit Sector ◽  
Future Research ◽  
For Profit ◽  
New Public

Managing Nonprofit Organizations (NPOs) has become much more complex, particularly under the influence of New Public Management (NPM). Like their for-profit and public sector counterparts, NPOs need to utilize their Intellectual Capital (IC) for maintaining humanistic and social values that traditionally characterized the nonprofit sector and yet remain innovative and sustainable in the competitive environment. Today, more research has been conducted to understand the management of IC as a conceptually robust framework for NPOs. Very little research has been done to examine what constitutes the development of IC for innovation in the organizations. Through an analysis of the IC and HRM literature, this chapter argues that human resource strategies and practices play an important role in the IC development in the nonprofit context. A theoretical framework is proposed to illustrate the connections between IC and human resource strategies and practices. Finally, the chapter suggests directions for future research.

scholarly journals The role of social capital: bridging, bonding or both?

2021 ◽  
Author(s):  
Mary K. Foster ◽  
Agnes G. Meinhard ◽  
Ida Berger
Keyword(s):  
Social Capital ◽  
Economic Development ◽  
Nonprofit Organizations ◽  
Labour Force ◽  
Voluntary Organizations ◽  
Economic Role ◽  
For Profit ◽  
Working Paper ◽  
Job Growth

[First paragraph of Introduction] : Nonprofit scholars have investigated several theoretical avenues in their search for an understanding of the role of nonprofit organizations in society. Some discussions have concentrated on the economic role of nonprofit organizations focusing on contribution to GDP (Stewart, 1996, Weisbrod, 1998), job growth (Hall & Banting, 2000), and the labour force value of volunteer work (Day & Devlin, 1996; Duchesne, 1989). Other discussions have considered the role from the perspective of contribution to society in terms of social service provision, and recreational and cultural enrichments beyond what can be provided by the for profit or government sectors (Hall & Banting, 2000, Kramer, 2000, Salamon & Anheier, 1998). Yet, a third scholarly focus has been to investigate the role of voluntary organizations in developing and maintaining social capital. With the publication of Putnam’s (2000) book, Bowling Alone, this concept has become the topic of increasing academic discourse, because of the connection that he makes between voluntary associations, social capital and economic development. Indeed, Putnam (1993, 1995) and Fukuyama (1995) conclude that social capital is a precondition for economic prosperity. The purpose of this paper is to explore the role of voluntary organizations as bridgers and bonders in society and the implications of this role in social and economic development. Keywords: CVSS, Centre for Voluntary Sector Studies, Working Paper Series,TRSM, Ted Rogers School of Management Citation:

Twitter Usage Using Common Reference to Tinnitus

2020 ◽  
Vol 29 (2) ◽  
pp. 206-217
Author(s):  
Jianyuan Ni ◽  
Monica L. Bellon-Harn ◽  
Jiang Zhang ◽  
Yueqing Li ◽  
Vinaya Manchaiah
Keyword(s):  
Nonprofit Organizations ◽  
Temporal Trends ◽  
Temporal Analysis ◽  
Cross Sectional ◽  
For Profit ◽  
Common Reference ◽  
Personal Experiences ◽  
Twitter Users ◽  
Sectional Analysis ◽  
Share Information

Objective The objective of the study was to examine specific patterns of Twitter usage using common reference to tinnitus. Method The study used cross-sectional analysis of data generated from Twitter data. Twitter content, language, reach, users, accounts, temporal trends, and social networks were examined. Results Around 70,000 tweets were identified and analyzed from May to October 2018. Of the 100 most active Twitter accounts, organizations owned 52%, individuals owned 44%, and 4% of the accounts were unknown. Commercial/for-profit and nonprofit organizations were the most common organization account owners (i.e., 26% and 16%, respectively). Seven unique tweets were identified with a reach of over 400 Twitter users. The greatest reach exceeded 2,000 users. Temporal analysis identified retweet outliers (> 200 retweets per hour) that corresponded to a widely publicized event involving the response of a Twitter user to another user's joke. Content analysis indicated that Twitter is a platform that primarily functions to advocate, share personal experiences, or share information about management of tinnitus rather than to provide social support and build relationships. Conclusions Twitter accounts owned by organizations outnumbered individual accounts, and commercial/for-profit user accounts were the most frequently active organization account type. Analyses of social media use can be helpful in discovering issues of interest to the tinnitus community as well as determining which users and organizations are dominating social network conversations.

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