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How do entrepreneurial directors shape financial reporting quality in non-profit organizations?

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  • Chen, Sicen
  • Lin, Shuping
  • Luo, Yalin
  • Zhang, Pengdong

Abstract

This paper examines the relationship between entrepreneur directors and financial reporting quality in non-profit organizations (NPOs). Our findings reveal that NPOs with entrepreneur directors exhibit significantly higher financial reporting quality. We argue that the impact of entrepreneur directors on financial reporting quality is contingent on their willingness to engage in oversight and their concerns about reputation. Furthermore, our analysis indicates that the influence of entrepreneur directors on financial reporting quality is more pronounced when there is at least one female entrepreneur on the board or when the average age of entrepreneur directors exceeds the mean. This positive relationship is also strengthened when NPOs maintain higher levels of transparency. However, the presence of government officials on the board weakens this positive association. This study contributes to the literature on NPO governance by providing new evidence on how entrepreneur directors impact financial reporting practices in the non-profit sector.

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  • Chen, Sicen & Lin, Shuping & Luo, Yalin & Zhang, Pengdong, 2025. "How do entrepreneurial directors shape financial reporting quality in non-profit organizations?," International Review of Economics & Finance, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:reveco:v:99:y:2025:i:c:s105905602500156x
    DOI: 10.1016/j.iref.2025.103993
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