Effect Of Internal Governance Structure Of NPO On Financial Transparency

As the independent Third-party,non-governmental organizations are offered with wid e developing space by growing market economy,social transformation and governmental f unction transfer.Whereas the problems such as invalid internal governance,sporadic publi c scandals and low social trust come up while NPOexpanding in scale and quantity.Thus NPO lose credit to society while trust crisis hampers their development.Trust crisis mainly results from deficiency of organizational financial transparency which is the main propelli ng force in obtaining public trust and social resource.Improving NPO financial transparen cy play the main role in organizational development with its capacity in promoting organiz ational discipline and ability construction.Lack of financial transparency is largely caused by unreasonable social supervisory mechanism especially internal supervisory mechanism,efficient internal supervisory mechanism is strongly connected to internal governance struc ture.To better analyze how NPO internal governance mechanism effects financial transpar ency,principal-agent theory,stakeholder theory and governance theory are used here.Two appraisal methods are employed here in assessing financial transparency.Firstly we evalu ate the financial transparency of 471 NPO over 3A level in social organization information.net with concluded 20 indexes in correlation,reliability,intelligibility,comparability and c omprehensiveness of qualitative characteristics of accounting information.Secondly,from t he point of view from stakeholders,by means of factor analysis and with the help of financ ial performance,we scored the NPO of same performance in first evaluation as the second e valuation.To present the effect of internal governance structure,86 samples with complete internal governance structure were selected from the evaluation result,from the angle of bo ard of directors,board of supervisors and secretary general we ventured 8 research assumpti ons which are respectively Board size,the number of meetings of the board of directors,th e board of directors,the board of supervisors,the proportion of women,the average age of the board of supervisors,the board of supervisors,the secretary of the remuneration incenti ves,the education level of secretary general.After this correlation analysis and regression analysis were performed to test the corresponding hypothesis.Though the study we found t hat times of council meetings,Council political connections,supervisors professional back ground and the education level of secretary general passed the test of significance and are c onsistent with the hypotheses that the four explanatory variables have an impact on the fina ncial transparency of NPO,the rest of variables didn't pass the significance test,but are concordant and similar to the previous research.According to the results of empirical analysi s,establishing and perfect the laws and regulations of the NPO,the introduction of perform ance evaluation mechanism and optimization of members of the employment standards sho uld be to optimize the internal governance structure,strengthen internal supervision,impro ving the financial transparency of NPO were proposed.