Nonprofit Boards ... - Accounting and Small Business /Beverly Shares

October 10, 2011 ? 1:57 PM

Non profit need-to-know .?? Filed under leadership, board of directors and governance.

Excerpt??In the paper, Nonprofit Boards: Size, Performance and Managerial Incentives, forthcoming in the Journal of Accounting and Economics as published by Elsevier, we study the relation between a nonprofit organization?s board of directors and the number of programs or objectives it pursues, its performance and its manager?s incentives. We posit that board membership is only conferred on directors that bring assets that are valuable to the nonprofit. However, the conferred control rights allow the directors to use the organization to pursue their own objectives. We hypothesize that directorship is only granted when the value of a director?s asset exceeds the cost of accommodating their objective. Consequently, we predict that board size is positively related to the number of objectives a nonprofit pursues, its performance in raising and spending funds, and inversely related to its managers? incentives.

Read full study??via Nonprofit Boards: Size, Performance and Managerial Incentives ? The Harvard Law School Forum on Corporate Governance and Financial Regulation.

Like this:

Be the first to like this post.

Source: http://bjconquest.com/2011/10/10/nonprofit-boards-size-performance-and-managerial-incentives-%E2%80%94-the-harvard-law-school-forum-on-corporate-governance/

banana agt agt nano nano lemur sharon