Table 6. Regression results (internal controls specific)

Nonprofit fraud Coef. S.E. Oddsratio S.E.
Governance policies
 Form 990 transparency –0.238 (0.181) 0.789 (0.143)
 Conflict of interest policy 0.079 (0.354) 1.081 (0.382)
 Annual disclosure of conflicts 0.135 (0.349) 1.144 (0.400)
 Policy monitoring and enforcement –0.452** (0.220) 0.637** (0.140)
 Whistleblower policy –0.280 (0.268) 0.756 (0.203)
 Document retention and destruction 0.131 (0.252) 1.140 (0.287)
 Compensation process for CEO –0.376 (0.252) 0.686 (0.173)
 Compensation process for other –0.540** (0.290) 0.583** (0.169)
Financial audit system
 Independent compilation or review 0.056 (0.305) 1.008 (0.309)
 Independent audit –0.547** (0.359) 0.578** (0.208)
 Audit oversight committee –0.098 (0.338) 0.907 (0.308)
Orgs. characteristics
 Board size –0.121 (0.091) 0.886 (0.081)
 Board independence –0.130 (0.247) 0.878 (0.217)
 Orgs. age 0.008* (0.004) 1.008* (0.004)
 Orgs. size –0.059* (0.033) 0.943* (0.031)
 Employee –0.000 (0.001) 1.000 (0.001)
 Government grant 0.158 (0.197) 1.171 (0.236)
 Donative org. –0.296 (0.185) 0.743 (0.140)
 Debt ratio 0.989*** (0.254) 2.687*** (0.682)
 Family relation 0.431** (0.229) 1.538** (0.351)
 Location (urban=1) –0.227 (0.197) 0.797 (0.157)
 NTEE-code control Yes Yes
Constant 1.780*** (0.553) 6.038*** (3.342)
Observations 1,280 1,280
p<0.1,
p<0.05,
p<0.01.
Orgs, organizations; NTEE, national taxonomy of exempt entities.