Nonprofit organizations worldwide are confronted with an increasing demand for accountability and improved financial transparency. Financial reporting by nonprofit organizations is no longer an exception; it has become a rule.The usefulness of a financial report to an organization’s stakeholders depends on its quality. The latter is safeguarded by reporting standards as well as the commitment of the organization to fully implement these standards. Although resource dependence and coercive isomorphism have been used in earlier nonprofit organization research, no empirical research has linked these theories to compliance with financial reporting standards. Using a unique setting in which a large number of (very) large Belgian nonprofit organizations are confronted with far-reaching changes in financial reporting regulations, the effect of resource dependence and coercive isomorphism on accounting and financial reporting compliance is documented.
Allen, A., & Sanders, G.D. ( 1994). Financial disclosure in U.S. municipalities: Has the Governmental Accounting Standards Board made a difference? Financial Accountability & Management, 10, 175-193.
2.
Anheier, H.K. ( 2002, October). What kind of third sector, what kind of society?Presentation at Citizen’s Forum, Council of Europe, Strasbourg. Retrieved December 13, 2009, from www.coe.int/t/e/integrated_projects/democracy/citizens_forum.ppt
3.
Belgisch Staatsblad. (2002, December 11). Wet betreffende de verenigingen zonder winstoogmerk, de internationale verenigingen en de stichtingen [Law concerning nonprofit organizations, international organizations, and foundations] . Brussels, Belgisch Staatsblad .
4.
Benjamin, L.M. ( 2008). Account space: How accountability requirements shape nonprofit practice. Nonprofit and Voluntary Sector Quarterly , 37, 201-223.
5.
Carpenter, V.L., & Feroz, E.H. ( 2001). Institutional theory and accounting rule choice: An analysis of four U.S. state governments’ decisions to adopt generally accepted accounting principles. Accounting, Organizations and Society , 26, 565-596.
6.
Chang, C.F., & Tuckman, H.P. ( 1991). Financial vulnerability and attrition as measures of nonprofit performance. Annals of Public and Cooperative Economics , 62, 655-672.
7.
Christiaens, J. ( 1999). Financial accounting reform in Flemish municipalities: An empirical investigation. Financial Accountability & Management, 15(1), 21-40.
8.
Christiaens, J., Vanhee, C., Verbruggen, S., & Milis, K. ( 2008). Verenigingen en stichtingen: Vergelijkend en empirisch onderzoek van de boekhoudregelingen [Associations and foundations: Comparative and empirical examination of the accounting rules]. Bruges, Belgium: Die Keure.
9.
Currie, G., & Suhomlinova, O. (2006). The impact of institutional forces upon knowledge sharing in the UK NHS: The triumph of professional power and the inconsistency of policy. Public Administration, 84(1), 1-30.
10.
Da Costa Carvalho, J.B., Camoes, P.J., Jorge, S.M., & Fernandes, M.J. (2007). Conformity and diversity of accounting and financial reporting practices in Portuguese local government . Canadian Journal of Administrative Sciences, 24, 2-14.
11.
DiMaggio, P.J., & Powell, W. ( 1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147-160.
12.
Dixon, K., Coy, D., & Tower, G. ( 1991). External reporting by New Zealand universities 1985-1989: Improving accountability. Financial Accountability and Management , 7, 159-178.
13.
Dolnicar, S., Irvine, H., & Lazarevski, K. (2008). Mission or money? Competitive challenges facing public sector nonprofit organizations in an institutionalized environment. International Journal of Nonprofit & Voluntary Sector Marketing, 13(2), 107-117.
14.
Fernandez, J.J. ( 2008). Causes of dissolutions among Spanish nonprofit associations . Nonprofit and Voluntary Sector Quarterly, 37, 113-137.
15.
Froelich, K. ( 1999). Diversification of revenue strategies: Evolving resource dependence in nonprofit organizations. Nonprofit and Voluntary Sector Quarterly, 28, 246-268.
16.
Giroux, G., & McLelland, A.J. (2003). Governance structures and accounting at large municipalities. Journal of Accounting and Public Policy, 22, 203-230.
17.
Greening, D.W., & Gray, B. ( 1994). Testing a model of organizational response to social and political issues. Academy of Management Journal, 37, 467-498.
18.
Guler, I., Guillén, M.F., & Macpherson, J.M. (2002). Global competition, institutions, and the diffusion of organizational practices: The international spread of ISO 9000 quality certificates. Administrative Science Quarterly , 47, 207-232.
19.
Guo, C. ( 2007). When government becomes the principal philanthropist: The effects of public funding on patterns of nonprofit governance. Public Administration Review, 67, 458-473.
20.
Hager, M.A., Galaskiewicz, J., & Larson, J.A. ( 2004). Structural embeddedness and the liability of newness among nonprofit organizations. Public Management Review, 6, 159-188.
21.
Heimovics, R.D., Herman, R.D., & Jurkiewicz, C.L. (1993). Executive leadership and resource dependence in nonprofit organizations: A frame analysis. Public Administrative Review, 53, 419-427.
22.
Hodge, M.M., & Piccolo, R.F. ( 2005). Funding source, board involvement techniques and financial vulnerability in nonprofit organizations. A test of resource dependence. Nonprofit Management and Leadership, 16, 171-186.
23.
Ingram, R.W. ( 1984). Economic incentives and the choice of state government accounting practices. Journal of Accounting Research, 22(1), 126-144.
24.
Ingram, R.W., & Copeland, R.M. (1981, Summer). Disclosure practices in audited financial statements of municipalities. Public Budgeting and Finance, 47-58.
25.
Ingram, R., & DeJong, D. (1987). The effect of regulation on local government disclosure practices. Journal of Accounting & Public Policy, 6, 245-270.
26.
Jegers, M., & Houtman, C. ( 1993). Accounting theory and compliance with accounting regulations: The case of hospitals. Financial Accountability & Management , 9, 267-278.
27.
Jones, C.L., & Roberts, A.A. ( 2006). Management of financial information in charitable organizations: The case of joint-cost allocations. Accounting Review, 81, 159-178.
28.
Krishnan, J., & Schauer, P.C. ( 2000). The differentiation of quality among auditors: Evidence from the not-for-profit sector. Auditing: A Journal of Theory and Practice, 19(2), 9-25.
29.
Krishnan, R., Yetman, M.H., & Yetman, R.J. ( 2006). Expense misreporting in nonprofit organizations. Accounting Review, 81, 399-420.
30.
Macedo, I.M., & Pinho, J.C. ( 2006). The relationship between resource dependence and market orientation: The specific case of nonprofit organizations. European Journal of Marketing, 40, 533-553.
31.
Marée, M., Gijselinckx, C., Loose, M., Rijpens, J. and Franchois, E. ( 2008). Verenigingen in België. Een kwantitatieve en kwalitatieve analyse van de sector. [Associations in Belgium. A qualitative and quantitative analysis of the sector]. Brussels, Koning Boudewijnstichting.
32.
Meyer, J. ( 1983). On the celebration of rationality: Some comments on Boland and Pondy. Accounting, Organizations and Society, 8, 235-240.
33.
Oliver, C. ( 1991). Strategic responses to institutional processes. Academy of Management Review, 16, 145-179.
34.
Owusu-Ansah, S., & Leventis, S. ( 2006). Timeliness of corporate annual financial reporting in Greece. European Accounting Review, 15, 273-287.
35.
Panel on the Nonprofit Sector. (2005). Strengthening transparency, governance, and accountability of charitable organizations . Retrieved December 13, 2009, from http://www.nonprofitpanel.org/report/final/
36.
Parker, L. ( 2007). Boardroom strategizing in professional associations: Processual and institutional perspectives. Journal of Management Studies, 44, 1454-1480.
37.
Parsons, L.M. ( 2007). The impact of financial information and voluntary disclosures on contributions to not-for-profit organizations. Behavioral Research in Accounting, 19, 179-196.
38.
Pfeffer, J., & Salancik, G.R. (1978). The external control of organizations: A resource dependence perspective. New York : HarperCollins.
39.
Pina, V., & Torres, L. ( 2003). Reshaping public sector accounting: An international comparative view. Canadian Journal of Administrative Sciences , 20, 334-350.
40.
Posnett, J., & Sandler, T. ( 1989). Demand for charity donations on private nonprofit markets: The case of the U.K. Journal of Public Economics, 40, 187-200.
41.
Robbins, W.A., & Austin, K.R. ( 1986). Disclosure quality in governmental financial reports: An assessment of the appropriateness of a compound measure. Journal of Accounting Research, 24, 412-421.
42.
Roberts, A. ( 2005, March). Implications of joint cost standards for charity reporting. Accounting Horizons, 19, 11-24.
43.
Schmid, H. ( 2001). Evaluating the impact of legal change on nonprofit and for-profit organizations: The case of the Israeli long-term care insurance law. Public Management Review, 3, 167-189.
44.
Stolowy, H., & Lebas, M.J. ( 2006). Financial accounting and reporting: A global perspective . London: Thomson.
45.
Stone, M., Hager, M., & Griffin, J. ( 2001). Organizational characteristics and funding environments: A study of a population of United Way-affiliated nonprofits. Public Administration Review, 61, 276-289.
46.
Tinkelman, D. ( 1998). Differences in sensitivity of financial statement users to joint cost allocations: The case of nonprofit organizations. Journal of Accounting, Auditing & Finance, 13, 377-393.
47.
Tolbert, P.S. ( 1985, March). Institutional environments and resource dependence: Sources of administrative structure in institutions of higher education. Administrative Science Quarterly, 30, 1-18.
48.
Trussel, J. ( 2003). Assessing potential accounting manipulation: The financial characteristics of charitable organizations with higher than expected program-spending ratios. Nonprofit and Voluntary Sector Quarterly, 32, 616-634.
49.
Trussel, J., Greenlee, J., & Brady, T. ( 2002). Predicting financial vulnerability in charitable organizations . CPA Journal, 72(6), 66.
50.
UN Statistics Division. (2003). Handbook on nonprofit institutions in the system of national accounts. New York: United Nations. Retrieved December 13, 2009, from www.jhu.edu/ccss/unhandbook
51.
Weets, V., & Jegers, M. ( 2000). An analysis of financial statement coherence and audit firm quality differences. Tijdschrift voor Economie en Management , XLV, 339-358.
52.
Weisbrod, B.A., & Dominguez, N.D. (1986). Demand for collective goods in private nonprofit markets: Can fundraising expenditures help overcome free rider behavior? Journal of Public Economics, 30, 83-96.
53.
Yetman, M.H., & Yetman, R.J. ( 2006). The effects of governance on the financial reporting quality of nonprofit organizations (Working paper). Davis : University of California. Retrieved from http://ssm.com/abstract=590961
