Organizational Reputation,Financial Vulnerability And Organizational Performance Of Charitable Organizations

Under the background of the government’s simplification and decentralization,the original government functions have been transferred to charitable organizations.The government has increased its efforts to encourage charitable organizations to carry out charitable activities.Philanthropy has developed rapidly and has played a huge role in safeguarding China’s social justice.Among them,public welfare foundation is an important part of charitable organizations.Although China’s public welfare foundation started late,it has developed rapidly and is widely active in the fields of poverty alleviation and disaster relief,education,medical and health care,etc.However,in recent years,problems such as public welfare scandals,operational efficiency and even corruption have occasionally occurred,resulting in the loss of charitable resources.In sharp contrast,some public welfare foundations have achieved healthy and sustainable development due to their good operation and reputation.One of the typical characteristics of charitable organizations is the high degree of resource dependence,while charitable resources are limited,thus the competition among organizations is more intense.Facing the changeable charity environment outside,good reputation and financial status are crucial to improve the organization’s performance and maintain the normal operation of the organization.Therefore,this paper uses literature research,normative research and empirical research methods to study the relationship between organizational reputation,financial vulnerability and organizational performance,taking the influencing factors of organizational performance as the foothold.It is helpful to expand the scope of non-profit organization accounting research,find out the weak points of organizational finance,improve organizational governance and improve the performance of charitable organizations.This article is divided into six parts.The first part is about the research background,significance,content and innovation.It also sorts out and summarizes the relevant literature on the measurement of charitable organization performance,the influencing factors of organizational performance,organizational reputation and organizational performance,financial vulnerability and organizational performance,etc.Then,based onagency theory,signaling theory and resource dependence theory,this paper analyzes the relationship between organizational reputation and organizational performance,the relationship between financial vulnerability and organizational performance,and the relationship between organizational reputation,financial vulnerability and organizational performance,and puts forward three research hypotheses.Thirdly,a great deal of manual collection and sorting work has been carried out from social organization network,foundation center network,foundation self-built official website and other websites with high credibility,and 161 national foundation data from 2008 to 2018 have been obtained.Through the designed organizational reputation evaluation system,the organizational reputation has been quantified with the help of principal component analysis and weighted average method,and the research hypothesis of this paper has been tested with multiple regression analysis,corresponding endogenous discussion and robustness test.Finally,according to the results of the study,the corresponding policy recommendations,limitations and prospects are provided.The research in this paper finds that: the improvement of the organization’s reputation can improve the organization’s fund-raising performance and the performance of public welfare activities;Financial vulnerability will damage the organization’s financing performance and public support performance.In addition,financial vulnerability has a positive moderating effect on organizational reputation and organizational performance.After further distinguishing the nature of property rights,whether public offering or non-public offering,the improvement of organizational reputation can promote the improvement of organization’s financing performance,and organizations with weak financial position will damage the financing performance.The improvement of public fund’s organizational reputation can also improve the performance of public welfare activities.The fragile financial situation of non-public funds will also damage the performance of public support.Compared with financially stable organizations,the organizational reputation of publicly-funded foundations with fragile financial status plays a significant role in improving fund-raising performance.Therefore,some pertinent suggestions are put forward on strengthening the awareness of maintaining the organization’s reputation,strengthening learning to enhance the organization’s reputationand improving the organization’s internal financial environment,which is conducive to improving the organization’s performance and thus promoting the sustained and healthy development of charitable organizations.The research innovation of this paper mainly covers the following two aspects:(1)Taking China’s charitable organizations as the research objects,enriching the research results of organizational financial vulnerability and its impact on organizational performance under the institutional background of developing countries;(2)The organizational reputation evaluation system is established.Through consulting relevant documents and combining with the reality of our country,multiple indicators are incorporated into the system,and the comprehensive score of organizational reputation is calculated by principal component analysis and weighted average method,so as to better reflect the actual situation of organizational reputation and test its impact on organizational performance.