Do 'good governance' codes enhance financial accountability? Evidence from managerial pay in Dutch charities
Financial Accountability and Management , Volume 31 - Issue 3 p. 316- 344
This paper examines the initial impact of a 'good governance' code for charitable organisations that was promulgated in the Netherlands in 2005. Data are gathered from publicly available annual reports of 138 charities in the postimplementation phase of the code (2005-2008). We first examine whether the code altered charities' governance structures. Next, we investigate managerial pay as a key aspect of discharging financial accountability because prior literature focused on 'excessive' compensation. The findings indicate that a strengthened governance structure positively affects the likelihood of disclosing information concerning managerial pay, as well as mitigating managerial pay level.
|Charities, Codes, Governance, Managerial pay, Nonprofit sector|
|Financial Accountability and Management|
|Organisation||Erasmus University Rotterdam|
Perego, P.M, & Verbeeten, F.H.M. (2015). Do 'good governance' codes enhance financial accountability? Evidence from managerial pay in Dutch charities. Financial Accountability and Management, 31(3), 316–344. doi:10.1111/faam.12059