Open AccessThe Sarbanes-Oxley Act And German Non-Profit Organizations: An Empirical Investigation
Author(s) -
Thomas Wilhelm Hasenpflug
Publication year - 2012
Publication title -
journal of business and economics research
Language(s) - English
Resource type - Journals
eISSN - 2157-8893
pISSN - 1542-4448
DOI - 10.19030/jber.v10i7.7147
Subject(s) - german , business , revenue , non profit , corporate governance , stakeholder , accounting , scope (computer science) , private sector , not for profit , public relations , marketing , business administration , political science , finance , law , archaeology , computer science , history , programming language
Drawing on a survey of German non-profit organizations, this paper explores the state of implementation of corporate governance mechanisms by focusing on the organizations profiles. Subject of the research are those mechanisms as developed in the 2002 Sarbanes-Oxley Act for the for-profit sector which have since also been implemented for non-profit sector organizations. In applying chi-square tests, the association between the existence of these practices and a range of organizational characteristics was reviewed and the most influential characteristics were identified. This association of characteristics and practices explains a potential compliance of an organization. Such knowledge can be applied by a number of stakeholder groups, such as organizational decision-makers, legislators and sponsors. The identified characteristics, in order of importance, were annual revenue, age of the organization, existence of an international branch structure, organizations board members being active in the private sector, and organizations having an international scope of activities.