Earnings management by non-profit organisations: evidence from UK charities
Informed by stakeholder theory and resource dependence theory, this paper investigates whether United Kingdom (UK) charities are engaged in earnings management practices. Based on a sample of 1414 charities over a five-year period (2008–2012) this study firstly finds that UK charities use discretion...
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| Format: | Article |
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Wiley
2018
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| Online Access: | https://eprints.nottingham.ac.uk/50295/ |
| _version_ | 1848798212326948864 |
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| author | Nguyen, Tam Soobaroyen, Teerooven |
| author_facet | Nguyen, Tam Soobaroyen, Teerooven |
| author_sort | Nguyen, Tam |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Informed by stakeholder theory and resource dependence theory, this paper investigates whether United Kingdom (UK) charities are engaged in earnings management practices. Based on a sample of 1414 charities over a five-year period (2008–2012) this study firstly finds that UK charities use discretionary accruals to drive their financial results toward a zero surplus/deficit; this result also reveals that the distribution of reported earnings around zero is prevalent amongst UK charities. In addition, in contrast to prior findings, the empirical results point to a significant association between leverage and earnings management behaviour by charities. Lastly, this study also finds that the practice of earnings management is influenced by non-profit organizational size. |
| first_indexed | 2025-11-14T20:16:11Z |
| format | Article |
| id | nottingham-50295 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:16:11Z |
| publishDate | 2018 |
| publisher | Wiley |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-502952020-05-04T19:42:44Z https://eprints.nottingham.ac.uk/50295/ Earnings management by non-profit organisations: evidence from UK charities Nguyen, Tam Soobaroyen, Teerooven Informed by stakeholder theory and resource dependence theory, this paper investigates whether United Kingdom (UK) charities are engaged in earnings management practices. Based on a sample of 1414 charities over a five-year period (2008–2012) this study firstly finds that UK charities use discretionary accruals to drive their financial results toward a zero surplus/deficit; this result also reveals that the distribution of reported earnings around zero is prevalent amongst UK charities. In addition, in contrast to prior findings, the empirical results point to a significant association between leverage and earnings management behaviour by charities. Lastly, this study also finds that the practice of earnings management is influenced by non-profit organizational size. Wiley 2018-06-26 Article PeerReviewed Nguyen, Tam and Soobaroyen, Teerooven (2018) Earnings management by non-profit organisations: evidence from UK charities. Australian Accounting Review . ISSN 1835-2561 earnings management; non-profit organisations; charities; leverage; stakeholder theory; resource dependence theory https://onlinelibrary.wiley.com/doi/abs/10.1111/auar.12242 doi:10.1111/auar.12242 doi:10.1111/auar.12242 |
| spellingShingle | earnings management; non-profit organisations; charities; leverage; stakeholder theory; resource dependence theory Nguyen, Tam Soobaroyen, Teerooven Earnings management by non-profit organisations: evidence from UK charities |
| title | Earnings management by non-profit organisations: evidence from UK charities |
| title_full | Earnings management by non-profit organisations: evidence from UK charities |
| title_fullStr | Earnings management by non-profit organisations: evidence from UK charities |
| title_full_unstemmed | Earnings management by non-profit organisations: evidence from UK charities |
| title_short | Earnings management by non-profit organisations: evidence from UK charities |
| title_sort | earnings management by non-profit organisations: evidence from uk charities |
| topic | earnings management; non-profit organisations; charities; leverage; stakeholder theory; resource dependence theory |
| url | https://eprints.nottingham.ac.uk/50295/ https://eprints.nottingham.ac.uk/50295/ https://eprints.nottingham.ac.uk/50295/ |