Exploring the Factors Associated with Online Financial and Performance Disclosure in Nonprofits

• In Event: Regulation and Not-for-Profit

Abstract

This paper applies theories of technological innovation to web disclosure in nonprofit settings. Our model specifies individual, technological, organizational, and environmental characteristics that influence the adoption and/or implementation of web disclosure. In order to empirically test the model, a questionnaire was administered to a sample of 775 organizations in an eight-county regional area in the Northeast United States. Results reveal that CEO and organizational characteristics are related to web disclosure. Specifically, there is more disclosure of performance information online when the CEO believes that the web is useful in promoting transparency and accountability, when the organization views the web as a communication or strategic tool, when more employees have technical expertise, and when the board of directors is more supportive of web technology. We found more web disclosure of financial information when the organization possesses the technological readiness for web disclosure in terms of employees with technical expertise and a dedicated web budget. We conclude with implications for theory and practice.

Authors

• Marie Blouin, The Pennsylvania State University Harrisburg Campus

• Roderick Lee, The Pennsylvania State University Harrisburg Campus