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Whom you connect with matters for transparency: Board networks, political embeddedness, and information disclosure by Chinese foundations
Author(s) -
Zhou Shuai,
Zhu Jiangang,
Zheng Guanghuai
Publication year - 2021
Publication title -
nonprofit management and leadership
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.844
H-Index - 54
eISSN - 1542-7854
pISSN - 1048-6682
DOI - 10.1002/nml.21463
Subject(s) - transparency (behavior) , embeddedness , politics , salient , open government , position (finance) , government (linguistics) , public relations , business , affect (linguistics) , accounting , sociology , political science , law , finance , linguistics , philosophy , communication , anthropology
Although the requirements for nonprofit transparency are increasing worldwide, the implementation of disclosure practices remains questioned. Drawing on social network theory, this study proposed that the size of and position in interlocking board networks can increase the propensity of foundations to promote transparency. It also hypothesized that political embeddedness, measured by the presence of powerful government officials, will negatively affect information disclosure. Using a short panel data set spanning 2,372 Chinese foundations, results showed that foundations with more board interlocks and occupying a brokerage position were more likely to implement information disclosure. However, when foundations were embedded with the government through officials, their transparency ratings were lower. It was further found that the effects of brokerage position and political embeddedness were more salient in public fundraising foundations than in nonpublic fundraising foundations. These findings therefore allude to the urgency that encouraging networking activities and democratizing the charitable field could heighten the diffusion of transparency.