Preferred Name
Diana Kamwibua
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Date of Graduation
5-15-2025
Semester of Graduation
Spring
Degree Name
Doctor of Philosophy (PhD)
Department
School of Strategic Leadership Studies
First Advisor
Nara Yoon
Abstract
This study examines the relationship between nonprofit board governance activities and nonprofit financial health, specifically focusing on solvency, profitability, and liquidity. It applies agency theory to explore how financial monitoring and policy activities—electronic filing, the compilation and review of financial statements by independent auditors, and independent financial audits—impact nonprofit financial stability. Using data from IRS Form 990 for the years 2014–2018, I employed Exploratory Factor Analysis (EFA) and multivariate linear regression to assess how these governance mechanisms influence financial performance. The findings indicate that while independent audits significantly contribute to solvency and liquidity, compiled financial statements and electronic filing do not exhibit strong predictive relationships with financial performance. The results highlight the complexity of governance effectiveness, suggesting that nonprofit financial sustainability depends not only on regulatory compliance but also on strategic financial management and operational efficiency. This study contributes to nonprofit financial governance scholarship by providing empirical evidence on the relationship between board oversight practices and financial stability. The findings have implications for nonprofit executives, board members, policymakers, and regulatory bodies, reinforcing the necessity of robust financial oversight, data-driven decision-making, and sector-specific financial strategies.
