Funding sources and excess CEO compensation in not-for-profit organizations

• Autores: Jennifer J. Gaver, S. Mary Im
• Localización: Accounting Horizons, ISSN-e 1558-7975, Vol. 28, Nº. 1, 2014, págs. 1-16
• Idioma: inglés
• DOI: 10.2308/acch-50588
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• Resumen

  • We examine the relation between funding composition and excess CEO compensation in not-for-profit organizations (NFPs). Our sample consists of 105,400 observations from 15,412 unique organizations during 1992 to 2007. The results suggest that excess CEO compensation is negatively related to funding from government grants, government-paid program service revenues, and public donations. Excess CEO compensation is positively related to funding from investment income. Our findings generally support the view that the demand for monitoring by fund providers is associated with agency costs in NFP organizations.