Exploring Factors that Influence Voluntary Disclosure by Chinese Foundations

Abstract

In the context of government regulation and social demand, Chinese foundations have increasingly faced pressure to make their organizations more transparent. Our paper explores the factors associated with voluntary disclosure by foundations in China. Building on the literature on transparency and foundation development in China, we explore how the public (donations) and the government (funding and control) might influence the voluntary transparent behaviors of Chinese foundations. Using the database of the China Foundation Center, we perform regression analysis of N = 2074 Chinese foundations. Controlling for organization size, age, and other characteristics, we find that foundations that depend more on donations, collect more restricted funds, receive fewer government funds, and operate with less government control have a higher probability of offering voluntary disclosure. We then discuss organizational strategies and policy implications for building a healthy and transparent foundation sector in China.