Assessing the quality of financial reporting and the effects of monitoring in Korean nonprofit organizations

Abstract

Because of various tax exemption benefits, the public demands accountability and transparency from nonprofit organizations. Publicly available financial information can be a solution. In Korea, National Tax Service started an online reporting system in 2008. Using the data disclosed in this system, this paper investigates the reporting quality of this financial information for the year 2011. The purpose of this study is to examine if various monitoring factors affect the reporting quality. Results show that capital provider monitoring influences nonprofit reporting quality.