The Impact Of Financial Information Disclosure Quality On Donations To Charitable Foundations

After decades of reform and opening up,the social wealth accumulating and the "civil consciousness" gradually awakening,the charitable foundation in our country has already ushered in a period of great development,and played an more important role in the social life and national economic development.Stable endowment income is the guarantee of sustainable development of the foundations.On the one hand,the difference of donation income of different foundation is obvious every year:the donated income of China Cancer Research Foundation(Public offering fund)and Tsinghua University Education Foundation(Private offering fund)both above 1.4 billion at 2013 and 2014.Although public offering organizations as the same,Inner Mongolia hetao culture development foundation,in recent years,its donation income all under 3 million yuan,and at 2014,it's zero.There are large number of the private equity fund has no donation income several years.On the other hand,a series of charity scandals made the credibility charitable of foundation been challenged a few years ago,A lot of social public so reluctant to donation to them,and then the foundation's donation income seriously declined after donation income more than one hundred billion at 2008.So in order to provide effective suggestions to add charitable foundations,donations,exploring the influencing factors of endowment income is of great significance to the development of the foundation.Financial information is one of the major part of all the information that thephilanthropic foundation must disclose.It can reflect the business of the charity,the utilization of the donation resource and the completion of the charity's missions.It is an important channel to solve the information asymmetry problem between donors and the charity organizations.The view of Scholars at home and abroad,whether the financial information quality affects charitable foundations' donation revenue,are different.Whether this effect is positive or negative,whether influence between public offering organization and private organization influence is different,whether organizations can increase their income by improving financial quality,these problems are worthy to be discussed.This article selects the net assets TOP 100 foundations published by China Foundation Center between 2012 and 2014,This thesis first briefly construct the system to evaluate the quality of the charitable foundation of financial information,by consulting the requirements In the accounting standards for enterprises about the quality of financial information,combining Charity foundation its own characteristics.After constructing model,making descriptive analysis and correlation analysis of the main variances,eontrolling the variates of charitable foundations' scale,the establishment of fixed number of year,financing way,then checking the influence of the financial information quality to donation income.This article focuses on researching the influence of the financial information quality to charity organizations' donation income under different ways of financing,so distinguish the total sample to the public offering foundation,subsample of private foundation,check separately each variable for donation income,then compare with each other and the total sample,for concluding the financing type effect of financial information quality raised for charity.Through research and analysis the paper mainly draw he following conclusions:there is a significant positive correlation between the financial information disclosure quality and its donation revenues.In the sub-sample test,the financial information disclosure quality of public foundations and private foundations are both positively related to donation revenues,but the significance level of non-public foundations is lower than the public foundations.Based on the empirical findings,to all charitable foundation,especially public offering foundations whose financial quality effect donation income obviously,the paper suggests that government regulars should improve the legislation and regulation and the nonprofit organizations accounting system,sound mandatory information disclosure system,to improve the integrity and timeliness of financial information;Strengthen third-party audit and establish industry regulation and the third party supervision system,to improve the reliability of financial information.Meanwhile,foundation itself should actively improve the quality of financial information disclosure,to improve the availability of financial information.