Non-financial reporting in non-profit organisations: the case of risk and governance disclosures in UK higher education institutions
Non-financial reporting in non-profit organisations: the case of risk and governance disclosures in UK higher education institutions
This paper investigates non-financial reporting in non-profit organisations. Specifically, it examines the extent to which UK higher education institutions (HEIs) make voluntary disclosures relating to risk management practices, and investigates whether composite governance quality index and senior management team characteristics can influence such risk disclosures. Using a sample of UK HEIs over a number of years and drawing insights from neo-institutional theory, our findings are three-fold. First, our baseline findings contribute to the literature by showing that the level of risk disclosure among HEIs in the UK is relatively low, especially when compared to the findings of prior studies that have been conducted on similar-sized publicly traded corporations. Second, we contribute to the literature by providing timely evidence on the impact of governance quality on risk disclosure. In particular, our evidence contributes to the existing literature by demonstrating that better-governed HEIs tend to engage in higher risk disclosures than their poorly-governed counterparts. Finally, our study contributes to the extant literature by providing new evidence that offers support for the “shared” governance model among UK HEIs. Specifically, our findings show that the positive governance quality–risk disclosure relationship is moderated/explained largely by the characteristics of the senior management team. Our findings are robust to controlling for endogeneities and alternative estimation techniques, with major implications for non-financial reporting. HIGHLIGHTS This paper examines non-financial reporting (NFR) in non-profit organisations, with specific focus on risk disclosures by UK higher education institutions (HEIs) We examine the effect of UK HEIs' governance quality on the level of risk disclosures; We investigate whether management team characteristics moderate the governance quality-risk disclosures nexus in UK HEIs We find that better-governed UK HEIs tend to engage in higher levels of risk disclosures We show further that the positive governance quality-risk disclosure relationship is moderated/explained largely by the characteristics of the senior management team.
Non-financial reporting, risk and governance disclosures, senior management team characteristics, reforms, non-profit organisations, neo-institutional theory, UK HEIs
Elmagrhi, Mohamed H.
4961f329-8a2d-47c5-83ee-34fc058030fe
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
2 December 2022
Elmagrhi, Mohamed H.
4961f329-8a2d-47c5-83ee-34fc058030fe
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Elmagrhi, Mohamed H. and Ntim, Collins
(2022)
Non-financial reporting in non-profit organisations: the case of risk and governance disclosures in UK higher education institutions.
Accounting Forum.
(doi:10.1080/01559982.2022.2148854).
Abstract
This paper investigates non-financial reporting in non-profit organisations. Specifically, it examines the extent to which UK higher education institutions (HEIs) make voluntary disclosures relating to risk management practices, and investigates whether composite governance quality index and senior management team characteristics can influence such risk disclosures. Using a sample of UK HEIs over a number of years and drawing insights from neo-institutional theory, our findings are three-fold. First, our baseline findings contribute to the literature by showing that the level of risk disclosure among HEIs in the UK is relatively low, especially when compared to the findings of prior studies that have been conducted on similar-sized publicly traded corporations. Second, we contribute to the literature by providing timely evidence on the impact of governance quality on risk disclosure. In particular, our evidence contributes to the existing literature by demonstrating that better-governed HEIs tend to engage in higher risk disclosures than their poorly-governed counterparts. Finally, our study contributes to the extant literature by providing new evidence that offers support for the “shared” governance model among UK HEIs. Specifically, our findings show that the positive governance quality–risk disclosure relationship is moderated/explained largely by the characteristics of the senior management team. Our findings are robust to controlling for endogeneities and alternative estimation techniques, with major implications for non-financial reporting. HIGHLIGHTS This paper examines non-financial reporting (NFR) in non-profit organisations, with specific focus on risk disclosures by UK higher education institutions (HEIs) We examine the effect of UK HEIs' governance quality on the level of risk disclosures; We investigate whether management team characteristics moderate the governance quality-risk disclosures nexus in UK HEIs We find that better-governed UK HEIs tend to engage in higher levels of risk disclosures We show further that the positive governance quality-risk disclosure relationship is moderated/explained largely by the characteristics of the senior management team.
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Non financial reporting in non profit organisations the case of risk and governance disclosures in UK higher education institutions
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Accepted/In Press date: 14 November 2022
e-pub ahead of print date: 2 December 2022
Published date: 2 December 2022
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Funding Information:
We are grateful to the Editor-in-Chief, Professor Carol Tilt, and two anonymous reviewers for their valuable comments and suggestions. We would like to acknowledge the Leadership Foundation for Higher Education (now part of Advance HE) (UK) for their generous support of this project through the 2015 Small Development Projects funding stream. We would like also to acknowledge the British Academy of Management (BAM) together with the Australian and New Zealand Academy of Management (ANZAM) for their generous support of this project through the 2019 BAM and Partner Grant Scheme.
Publisher Copyright:
© 2022 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
Keywords:
Non-financial reporting, risk and governance disclosures, senior management team characteristics, reforms, non-profit organisations, neo-institutional theory, UK HEIs
Identifiers
Local EPrints ID: 472704
URI: http://eprints.soton.ac.uk/id/eprint/472704
ISSN: 0155-9982
PURE UUID: fd04bfe7-7965-4b2f-9ab1-64e2e66dfcfa
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Date deposited: 15 Dec 2022 17:31
Last modified: 17 Mar 2024 02:27
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Mohamed H. Elmagrhi
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