Research On Index System Of The Commonwealth Foundation Of Financial Information Disclosure

The Commonwealth Foundation has continued a long tradition of human charity, compatibled with the modern spirit of law and gradually introduced the theory of corporate governance; it is a non-profit organization that plays a vital role in "social charitable market", which is dedicated to develop social welfare. As a formal organization with only30years, foundations have experienced from scratch to begin to take shape of rapid development.However, foundations are bearing the pressure of "public failure" that is due to the multiple characteristics of the stakeholders,which have lead to the ambiguity of public responsibility and let public welfare activities that were shining charitable halo cast a layer of losing faith to the public,so the sustained and healthy development organization suffers from questioning. The Commonwealth Foundation management and operation is blamed for the opaque information. Under the new situation, how to establish a scientific, applicable and easy index system of financial information disclosure to help the public identify the quanlity of foundations’information and make right decisions have become urgent.By using normative study, empirical analysis, survey analysis and etc, we try to integrate the system of our country background with socio-economic environment and let the information contents and qualities as a starting point.From the perspective of stakeholders, we conduct a comprehensive and in-depth research on the disclosure of foundations and design the index system of financial information. The main contents include:The first chapter states the background and significance of non-profit organizations. The second chapter discusses the property rights theory, principal-agent theory,asymmetric information theory and other basic theory, proposes a theoretical analysis path for this paper.The third chapter integrates with Chinese system background to analyze the present situation of foundations, exploring the defects of foundations’regulations and regulatory. The fourth chapter builds a scientific and rational information disclosure index system from the production, delivery, authentication, and other dimensions. The fifth chapter establishes a evaluation model to test the designed index system. The last chapter comes to conclusion based on the above analysis and advocates the innovation of this paper, research limitations and research suggestions in future.Main conclusions:(1) the index system has three levels of18specific indicators is combined with the quanlity of finiancial information and from the the three dimensions of information production, delivery and authentication.The index system not only can be used as a standard of evaluation, but also as a innovation of regulatory approach;(2) we found the index system is reasonable, and draw a conclusion that the financial performance is affected by three major factors of the income distribution,financial revenue and expenditure,capital operation by a comprehensive evaluation of the financial performance.The foundation can enhance the quanlity of information by disclosuring the income distribution,financial revenue and expenditure,capital operation.And the income distribution is more important,it is consistent with the situation of "capital flows are unknown" in our foundations.So the primary task of the Commonwealth Foundation is to make sure of the flow of each fund and get the public trust,which is the only way to support organization and realize the mission effectively.Innovations:(1)Under the guidance of principles on comprehensive, systematic,scientific and operational, we design a scientific and easy operational index system form three dimensions of production, delivery and authentication,which is combined with quanlity of finiancial information.(2) and draw a conclusion of three major factors that affect the quanlity of financial report by evaluating the financial performance, and the effectiveness of the index system has been tested.