Date of Conferral
Doctor of Business Administration (D.B.A.)
In the nonprofit industry, lapses in internal controls and low levels of accountability have resulted in many organizations becoming insolvent. Grounded in the agency theory, the purpose of this correlational study was to examine the relationship between federal compliance requirement, executive compensation, nonprofit size, nonprofit type, and internal control infraction. Archival data were collected from 144 nonprofit organizations in the southeast United States. The results of the multiple regression analyses indicated the model was able to predict the relationship between federal compliance requirement, executive compensation, nonprofit size, nonprofit type, and internal control infraction, F(7, 136) = 6.559, p < .001, R2 = .252, with non-profit type (hospitals), (Î² = -9.392, t = 7.191, p <0.050), accounting for a higher contribution to the model than executive compensation, (Î² = -0.049, t = 1.96, p <0.050). Federal compliance requirement and nonprofit size did not explain any significant variation in internal control infraction. The implications for positive social change included the potential for a better understanding by nonprofit managers of the importance of internal controls, leading to the effective and efficient provision of goods and services needed by members of society.
Brown, Laurence Richard, "Relationship between Federal Compliance Complexities and Internal Control Infraction" (2018). Walden Dissertations and Doctoral Studies. 4960.