Research On Financial Information Disclosure Of Charity Organizations Based On The Public Expectations

Charitable organizations in China have developed rapidly in recent years, the charityorganization made new achievements in2013, the amount of social donation in our country isexpected to about100billion yuan by December31,2013. But charitable organizations areregistered through the registration and management authorities and are supervised andmanaged through the executive authorities, leading to dilemma of high barriers to entry,strong dependence to governments and low efficiency of management. Some charitableorganizations have some problems, such as managing laxly, capital operating improperly,making broadly questioned to charitable organizations by the public, and leading a crisis ofconfidence unprecedented. The non-transparent financial information disclosure and theimperfect information disclosure mechanism are the important reasons to the crisis ofconfidence in the charity organization.With the rapid development of the growing philanthropy, the laws and regulations aboutthe charity organization put up the shortcomings, the external supervision does not reach thesetting goal, internal governance is not perfect, which make the charitable organizationssuffering many defects. Financial information disclosure is viewed as the main way tounderstand the charity’s operation and management for the public, but it is difficult to meetthe public at present, making the public losing confidence to the charity.This paper studies deeply financial information disclosure of charity organizations, usingthe method that combine norm and case analysis, qualitative analysis and quantitativeresearch. consulting a large number of literatures, on the basis of brief combing the domesticand foreign research literature, this study find the shortcomings of existing research and themain problems to be solved. Based on the information asymmetry theory, principal-agenttheory and expectation theory, this paper analysis financial information disclosure of charityorganizations combing with the typical negative events for charity, meanwhile, I designquestionnaire from the perspective of information needs by the public, then, according to thequestionnaire, I obtain relevant data for statistical analysis. Then, on this basis, this paperanalyzes the questions of financial information disclosure of charity organizations, and drawslessons from foreign successful experience in charity, in the end, this paper makes some suggestions to perfecting financial information disclosure of charity organizations, to promotethe sustained and healthy development of the charity.