The Effect Of Supervisory Board Character On The Financial Governance Of Nonpronfit Organizations

Recently, with the enhancement of social awareness and the decentration of the goverment power, the number of the nonprofit organization grows fast, and more and people begin to pay highly attention to it. However, as the nonprofit organization grow up strongly, several unavoidable problems such as public funds for personal use and the poor transparency show up. By sorting out relative problems, we find that the lack of efficient supervision in internal organization is one of the important reasons resulting in its poor operation. Since the board of supervisors carried out as the internal supervisory system of nonprofit organization in our country, it plays a positive role in the aspects of regulating internal organization management, but it is still far away from fully fulfil its function and obligation. There still exist problems such as the mismatch between the responsibility and power.In order to explore the practical effect of the governance of the board of supervisors, we have combined the current situation of the nonprofit organization in our country, to find out the essential factors that influence the efficiency in governance. We choose foundation as the typical example of the nonprofit organization. We put forward to five hypotheses, select120foundation samples published from the China Foundation Center, wield the theory of the Balance of Power, the Principal-Agent Theory and the Economic Man Hypothesis as the research basis, and make use of empirical approachs such as Descriptive Statistical Analysis, Correlation Analysis and Stepwise Regression Analysis. The research attempts to carry out an empirical study of the internal relationship between the five aspects of the internal governance of the board of supervisors, that is the age of supervisors, the scale of the board of supervisors, the meeting frequency of the board of supervisors, the externality of the supervisors, the gender diversity of the supervisors, and the financial governance factors.The research testifies that different aspects of the internal governance of the board of supervisors has a different relationship with the financial governance factor.Among them, the externality of the supervisors has an outstanding correlation with the financial governance factor. The age of supervisors, the scale of the board of supervisors, the meeting frequency of the board of supervisors doesn’t have a significant effect to the financial governance factor. The hypothesis about the relationship between the gender diversity of the supervisors and the financial governance factor has been proved wrong.According to the result, in order to fundamentally breakthrough the bottleneck in restricting the healthy development of the nonprofit organization, we must start from the improvement of internal governance and character of the nonprofit organization. Therefore, we suggest that we should improve the proportion of the externality of the supervisors in the board of supervisors, cultivate the professional quality of the supervisors, precisely locate the role of the board of supervisors and properly use the supervision mechanism abroad as a reference.