A Study On The Impact Of Chinese Foundation On Its Credibility

With the reform and opening up,Chineseeconomic system changes from organization of people's commune and planned economic system to the socialist market economic system,providing living spacefor our non-profit organizations.In 1981,China set up the first charitable foundation,then manyfoundations have been set upfollowed by a few years.Chinese foundations set off a great developing prelude.So far,Chinese foundations involve a number of areas,all over the country in various places.Charitable Foundations play an important role in promoting the effective allocation of social resources and public welfare charity in China.At the same time,with the great development,Chinese charitable foundations successively emerge a lot of charity scandals,leading to foundations' publictrust greatly reduced.So that the credibilityof the Chinese foundations fell into a credible crisis.The public improve the increasingly high voice for the informationtransparency of thefoundations.Information transparency has becomean important factor,if a charitable foundation want to maintain the credibility.Because information transparency is an important way for the public to understand the foundation,and it is also an important measure by the public to judge whether an organization behavior match the expectations,and thus the public can make decisions about foundation's trust and whether give it a support.It is all worth to research that whether the information transparency ofthe foundations have an impact on its credibility indeed,and how the impact has occurred.The first part of this paper reviews the literature at home and abroad,mainly sort outthe current research on the credibility of the information,the importance of information transparency,the impact of transparency on the credibility of the three parts of the relevant literature,stand in the previous studies to write this article.Then,it defines the concept of non-profit organization,foundation,credibility,transparency and confirm the trust delegation,social capital,public governance and information communication theory as the theoretical basis to reveal the importance of transparency to organizational credibility.The empirical part is primarily a test of the impact of the transparencyon the credibility of the foundation.Setting the informationtransparency as explaining variable,the credibility is the explained variable,the other influencing factors of the credibility is set as the control variable,as much as possible to consider the factors that affect the credibility,screening ten Shanghai charity foundations as the research sample.It is through the correlation analysis and multiple regression analysis to examine the impact of information transparency on its credibility.The empirical results show that there is a significant positive correlation between the transparency and credibility of the foundation.It is reveal that the improvement of the informationtransparency of the charity foundation does contribute to the improvement of the credibility.On the basis of the empirical basis,this paper constructs the influence path of the foundations' transparency on the credibility and analysis the information transparency through the three influencing factors of information symmetry,agency risk and social trust relationship affect the credibility of the foundation of the path.And it is also combined with the actual data of the Shanghai foundations and the cases of nationwide foundations to analyze the current problems of foundations and put forward to measures to enhance foundations' information transparency.