The Impact of Board Diversity and Expertise on Nonprofit Performance

Erica E. Harris

doi:10.1002/nml.21115

journal article Oct 18, 2014

The Impact of Board Diversity and Expertise on Nonprofit Performance

Erica E. Harris

Nonprofit Management and Leadership Vol. 25 No. 2 pp. 113-130 · Wiley

View at Publisher Save 10.1002/nml.21115

Abstract

This study examined the impact of board of director characteristics on nonprofit performance. Using data collected through a survey of nonprofit colleges and universities, the author provides evidence that specific board member characteristics are vital in shaping the financial and nonfinancial success of nonprofit institutions of higher education. Results indicate that both board member diversity and expertise are associated with better‐performing organizations. This work makes important initial forays into the relationships between board of director qualities and nonprofit performance. Although limited by the relatively small sample of colleges and universities, this study is unique in its ability to analyze nonprofit boards and both financial and nonfinancial performance measures.

Topics

No keywords indexed for this article. Browse by subject →

References

49

[1]

Adams R. (2008) 10.2139/ssrn.1107739

[2]

Women in the boardroom and their impact on governance and performance☆

Renée B. Adams, Daniel Ferreira

Journal of Financial Economics 10.1016/j.jfineco.2008.10.007

[3]

10.1086/430808

[4]

Allan K. "The Give/Get: A Stumbling Block to Board Diversity?" onPhilanthropy (2007)

[5]

Banker R. D. (2009)

[6]

Bartlett J. E. "Organizational Research: Determining Appropriate Sample Size in Survey Research" Information Technology, Learning, and Performance Journal (2001)

[7]

BoardSource.1999. “Perspectives on Nonprofit Board Diversity.”www.boardsource.org/dl.asp?document_id=511.

[8]

BoardSource.2007. “The Nonprofit Governance Index.”www.boardsource.org/UserFiles/File/Research/GovIndex‐2007.pdf.

[9]

Exploring the association between board and organizational performance in nonprofit organizations

William A. Brown

Nonprofit Management and Leadership 10.1002/nml.71

[10]

10.1177/0899764003257462

[11]

CalPERS "Global Principles of Accountable Corporate Governance" California Public Employees’ Retirement System (2009)

[12]

Carey K. "Graduation Rate Watch: Making Minority Student Success a Priority" Education Sector Reports (2008)

[13]

Corporate Governance, Board Diversity, and Firm Value

David A. Carter, Betty J. Simkins, W. Gary Simpson

Financial Review 10.1111/1540-6288.00034

[14]

10.2307/1981837

[15]

10.1002/nml.12201

[16]

Crutchfield L. (2008)

[17]

10.1016/s0272-7757(00)00048-0

[18]

10.1111/j.1475-679x.2005.00166.x

[19]

Drucker P. F. "What Business Can Learn from Nonprofits" Harvard Business Review of Accounting Studies (1989)

[20]

10.1016/j.jcorpfin.2003.12.001

[21]

10.1111/j.1540-6261.2006.00852.x

[22]

10.1111/1540-6288.00032

[23]

10.2308/acch.2006.20.1.75

[24]

Gardyn R. "Building Board Diversity" Chronical of Philanthropy (2003)

[25]

González‐Rivera C.2009. “Diversity on Foundation Boards of Directors.” Greenlining Institute.http://greenlining.org/resources/pdfs/foundationboarddiversityreport2009.pdf.

[26]

Correcting for Cross-Sectional and Time-Series Dependence in Accounting Research

Ian D. Gow, Gaizka Ormazabal, Daniel J. Taylor

The Accounting Review 10.2308/accr.2010.85.2.483

[27]

10.1016/j.jfineco.2007.05.009

[28]

10.1177/02750740022064605

[29]

Internal Revenue Service.2010. “Colleges and Universities Compliance Project Interim Report–May 7 2010.”www.irs.gov/pub/irs‐tege/cucp_interimrpt_052010.pdf.

[30]

10.1016/j.jempfin.2007.07.002

[31]

Judge W. Q. "An Empirical Comparison between the Board's Strategic Role in Nonprofit Hospitals and in For‐Profit Industrial Firms" Health Services Research (1992)

[32]

Keys P. Y. (2002)

[33]

Lublin J. S. "GM Will Replace at Least Six Others on Board" Wall Street Journal (2009)

[34]

MacKillop K. "Understanding the Non‐Profit Board of Directors" Ezine Nonprofit Articles (2010)

[35]

Miller D. E. "Prediction and Statistical Overkill Revisited" Measurement and Evaluation in Guidance (1973) 10.1080/00256307.1973.12022590

[36]

10.1016/0272-7757(91)90021-g

[37]

New York Stock Exchange.2004. “NYSE Listed Company Manual Section 303A Corporate Governance Listing Standards.” Frequently Asked Questions.http://www1.nyse.com/pdfs/FINAL_FAQ_NYSE%20Listed%20Company%20Manual%20Section%20303A_updated_1_4_10.pdf.

[38]

Ostrower F. (2007)

[39]

10.1016/0272-7757(93)90065-o

[40]

Parsons L. M. "Financial Reporting Factors Affecting Donations to Charitable Organizations" Advances in Accounting (2008)

[41]

10.5465/1556374

[42]

10.1007/bf00992370

[43]

10.1007/bf00411816

[44]

10.1177/00953999922019184

[45]

10.1177/0899764006296049

[46]

Women Directors on Corporate Boards: A Review and Research Agenda

Siri Terjesen, Ruth Sealy, Val Singh

Corporate Governance: An International Review 10.1111/j.1467-8683.2009.00742.x

[47]

10.1111/1468-2354.t01-1-00055

[48]

10.1016/0047-2727(86)90078-2

[49]

10.2307/256736

Cited By

66

How Much Does Nonprofit Board Governance Matter? Role of Interlocking Directorates, Executive Power, and Women on Boards in Executive Compensation

Nara Yoon · 2024

Review of Public Personnel Administ...

Nonprofit executive incentive pay

Steven Balsam, Erica E. Harris · 2018

Review of Accounting Studies

Metrics

66

Citations

49

References

Details

Published: Oct 18, 2014
Vol/Issue: 25(2)
Pages: 113-130
License: View

Authors

E

Erica E. Harris

Rutgers University–Camden

Cite This Article

Erica E. Harris (2014). The Impact of Board Diversity and Expertise on Nonprofit Performance. Nonprofit Management and Leadership, 25(2), 113-130. https://doi.org/10.1002/nml.21115

The Impact of Board Diversity and Expertise on Nonprofit Performance

You May Also Like