Board diversity and financial sustainability in charities: a Malaysian perspective

Charity failure has been a problem that has been plaguing developed countries and developing alike. In Malaysia, it has been reported that charities faced difficulties in raising donations due to the difficult economic climate. Past research has provided some evidence on the role of board diversi...

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Main Authors: Cheuk, Sharon, Nichol, Esmie Obrin, Tinggi, Michael, Daw, Tin Hla
Format: Article
Language:English
Published: Universiti Malaysia Sarawak (UNIMAS) 2017
Subjects:
Online Access:http://ir.unimas.my/id/eprint/19010/
http://ir.unimas.my/id/eprint/19010/1/SCT-021-revised%20%281%29%20%28abstrak%29.pdf
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author Cheuk, Sharon
Nichol, Esmie Obrin
Tinggi, Michael
Daw, Tin Hla
author_facet Cheuk, Sharon
Nichol, Esmie Obrin
Tinggi, Michael
Daw, Tin Hla
author_sort Cheuk, Sharon
building UNIMAS Institutional Repository
collection Online Access
description Charity failure has been a problem that has been plaguing developed countries and developing alike. In Malaysia, it has been reported that charities faced difficulties in raising donations due to the difficult economic climate. Past research has provided some evidence on the role of board diversity on the financial performance of for-profit organizations. This study examines the impact of board diversity in improving charity financial sustainability. A sample of 211 active charities (companies limited by guarantee) in 2016 was selected. Data on board diversity (age, gender, race and tenure) as well as financial sustainability were obtained and binary logistic regression via XLSTAT was performed. The findings suggested that director tenure diversity significantly predicts financial sustainability of charities. Age, race and ethnic diversity were found to be not significant. The implications of the study’s findings mean that charities in general should embark upon regular new director appointments, in order to maintain a fresh outlook and to bring in new infusion of skills at the strategic and operational levels.
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spelling unimas-190102018-01-03T06:37:46Z http://ir.unimas.my/id/eprint/19010/ Board diversity and financial sustainability in charities: a Malaysian perspective Cheuk, Sharon Nichol, Esmie Obrin Tinggi, Michael Daw, Tin Hla HF Commerce HF5601 Accounting Charity failure has been a problem that has been plaguing developed countries and developing alike. In Malaysia, it has been reported that charities faced difficulties in raising donations due to the difficult economic climate. Past research has provided some evidence on the role of board diversity on the financial performance of for-profit organizations. This study examines the impact of board diversity in improving charity financial sustainability. A sample of 211 active charities (companies limited by guarantee) in 2016 was selected. Data on board diversity (age, gender, race and tenure) as well as financial sustainability were obtained and binary logistic regression via XLSTAT was performed. The findings suggested that director tenure diversity significantly predicts financial sustainability of charities. Age, race and ethnic diversity were found to be not significant. The implications of the study’s findings mean that charities in general should embark upon regular new director appointments, in order to maintain a fresh outlook and to bring in new infusion of skills at the strategic and operational levels. Universiti Malaysia Sarawak (UNIMAS) 2017 Article PeerReviewed text en http://ir.unimas.my/id/eprint/19010/1/SCT-021-revised%20%281%29%20%28abstrak%29.pdf Cheuk, Sharon and Nichol, Esmie Obrin and Tinggi, Michael and Daw, Tin Hla (2017) Board diversity and financial sustainability in charities: a Malaysian perspective. International Journal of Business and Society. ISSN 1511-6670 http://www.ijbs.unimas.my
spellingShingle HF Commerce
HF5601 Accounting
Cheuk, Sharon
Nichol, Esmie Obrin
Tinggi, Michael
Daw, Tin Hla
Board diversity and financial sustainability in charities: a Malaysian perspective
title Board diversity and financial sustainability in charities: a Malaysian perspective
title_full Board diversity and financial sustainability in charities: a Malaysian perspective
title_fullStr Board diversity and financial sustainability in charities: a Malaysian perspective
title_full_unstemmed Board diversity and financial sustainability in charities: a Malaysian perspective
title_short Board diversity and financial sustainability in charities: a Malaysian perspective
title_sort board diversity and financial sustainability in charities: a malaysian perspective
topic HF Commerce
HF5601 Accounting
url http://ir.unimas.my/id/eprint/19010/
http://ir.unimas.my/id/eprint/19010/
http://ir.unimas.my/id/eprint/19010/1/SCT-021-revised%20%281%29%20%28abstrak%29.pdf