Do ‘good governance’ codes enhance financial accountability? Evidence from managerial pay in Dutch charities

Paolo Perego, FHM Verbeeten

Research output: Contribution to journalArticleAcademic

17 Citations (Scopus)
56 Downloads (Pure)

Abstract

This paper examines the initial impact of a ‘good governance’ code for charitable organizations that was promulgated in the Netherlands in 2005. Data are gathered from publicly available annual reports of 138 charities in the post-implementation phase of the code (2005-2008). We first examine whether the code altered charities’ governance structures. Next, we investigate managerial pay as a key aspect of discharging financial accountability because prior literature focused on ‘excessive’ compensation. The findings indicate that a strengthened governance structure positively affects the likelihood of disclosing information concerning managerial pay, as well it mitigates managerial pay level.
Original languageEnglish
Pages (from-to)316-344
Number of pages29
JournalFinancial Accountability and Management
Volume31
Issue number3
DOIs
Publication statusPublished - 2015

Research programs

  • RSM F&A

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