Study On The Relationship Between Board Characteristics And Financial Performance Of The Charity Organizations

Charity has positive effect on the social stability and development, but it has many problems today, many charity scandals happened in recent years. It makes it more urgent to improve charitable organization governance of our country. At present, the researches on charitable organizations include the information disclosure, supervision mechanism, legislation, credibility, and few researches study from the perspective of the Council. The Council is the core mechanism of charity organization governance, it decides the great affairs of charities, such as the formulation of the articles of association, annual work plan, the examination of specific activities and approval of foundation, the decision of the financial budget, internal management and supervision, personnel appointment and removal. Efficiency of Council will affect the decision-making and operation efficiency of charity organization as well as the organizational performance. So how Council features influence organizational performance is a key factor of organization governance study. The organization performance appraisal is of great subjectivity and charitable organization data are difficult to obtain, so the relationship between charitable organization Council traits and organizational performance is difficult to carry out empirical research. Financial performance data is easy to obtain, and financial performance is more objective, accurate and comparable relative to organizational performance. Therefore, this paper tries to study the relationship between Council characteristics and financial performance of charitable organizations, and explore measures to improve the financial performance of charities.The structure of this paper includes the following five parts:The first part introduces the background and significance of the research, summarizes the content and method of the study.The second part is the introduction of concept and theory of the charity organization. First of all, it introduces the origin and the characteristics of charities, classification of the charitable organizations, the development of the council system and charity organizations in china. Then, it analyzes the important function of charity organization Council and its impact on financial performance according to the relevant organization theory (resource dependence theory, agency theory, group decision theory).The third part is the study design. First, it makes theoretical analysis of the relationship between charitable organization Council characteristics and organizational performance, and proposes hypotheses. Then, it selects the Council core features. Finally, it quotes the financial performance evaluation system of Zhu Yu (2009) and uses fuzzy comprehensive evaluation method to evaluate our charitable organization financial performance.The fourth part is empirical analysis of the relationship between Council characteristics and financial performance. And to better explain the relationship between the two, this paper then make test and analysis respectively from four dimensions of financial performance (non-profit characteristics, financing ability, operation ability and development ability).The last part summarizes the results of the thesis. Some suggestions are put forward to improve the governance of charitable organizations in our country. It also points out the limitations of this study and direction of future research.The actively explore of this paper lies in: first, this paper uses a relatively scientific and reasonable method to evaluate the charity organization financial performance; secondly, there are few empirical researches study on the relationship between the Council characteristics and financial performance in our country, empirical research can improve the deficiencies of the existing descriptive study. At last, this paper can provides a reference for the construction of charity organization in our country.