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The Journal of Law and Economics, 45
European Accounting Review, 27
J. of Account. Literature, 26
Journal of Accounting and Economics, 42
The Accounting Review, 89
Journal of Accounting and Economics, 24
Contemporary Accounting Research, 33
Public Money and Management, 39
National Bureau of Economic Research
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 24
Journal of the American Taxation Association, 27
(1993)
Financial Statements of Not-for-Profit Organizations
Journal of Health Economics, 24
Journal of Health Economics, 10
Journal of Accounting Literature, 32
The Accounting Review, 81
The Accounting Review, 86
Psychological Science, 22
Journal of Accounting Literature, 27
Public Money and Management
The Journal of Business, 72
Canadian Journal of Administrative Sciences/Revue Canadienne Des Sciences de L'administration, 29
Journal of Accounting Research, 29
Review of Accounting Studies, 15
Financial Accountability and Management, 23
American Journal of Business Research, 4
Journal of Accounting and Economics, 40
M. Evans, K. House, D. Nanda (2021)
Executive Turnover in Nonprofit Organizations
In a wide variety of settings, individuals target round-numbered thresholds, relaxing effort when they are out of reach. This paper aims to investigate whether this phenomenon occurs in nonprofits as well.Design/methodology/approachThe paper empirically examines nonprofits’ propensity to cut expenses relative to the attainability of the zero-profit threshold.FindingsThis paper finds nonprofit firms are more likely to cut expenses when faced with small expected losses than with larger losses, and this pattern varies predictably with incentives to reach the zero-profit threshold.Research limitations/implicationsThis suggests managers are motivated by desire to reach the zero-profit threshold rather than to improve firms’ economic situations, as the propensity to cut expenses is lower when the threshold is out of reach.Social implicationsAdditionally, the results suggest that even the lack of explicit profit motive may not quell earnings management behavior.Originality/valueThese results begin to close the gap in our understanding of expense management in nonprofit firms, showing how operating expenses can be used to manage earnings.
Pacific Accounting Review – Emerald Publishing
Published: Aug 17, 2021
Keywords: Nonprofits; Expense management; Earnings targets; Earnings management; Not-for-profit; M41; L31
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