Author(s): Mohd Hisham Mahamud, Roshayani Arshad, Aida Maria Ismail, Ramesh Nair
Non-profit organisation refers to organisation engaged with an array of social concerns related to the environment, human resources and engagement in the community. In discharging their accountability, relevant information should be disclosed to the stakeholders. However, information disclose is usually heterogeneous and may affect the usefulness to meet the need of the stakeholders. Against this background, this research aims to examine the determinants of accountability information disclosure by Malaysian non-profit organisations in the period from 2014 to 2016. Based on signalling theory perspective and previous studies, five hypotheses were developed on the possible determinants of accountability disclosure information: size, revenue, number of board of directors, age and reputation. The sample in this research was non-profit organisations registered as company limited by guarantee with the Companies Commission of Malaysia and the total sample was 91 companies. Using random effect model regression, the results indicated that size was the only factor that was considered determinants of accountability information disclosure. The insignificant results for the other variables indicate lack of motivations for accountability information disclosure by the non-profit organisations and this may be related to less legal requirement and absence of stakeholder's pressure. Nevertheless, this study provides empirical evidence on Malaysian non-profit organisations perspective for better information disclosure. The accountability index developed in this study can provide input for the non-profit organisations to identify accountability items in their disclosure to fulfill the stakeholders' need. Finally, this study reveals several implications for improving accountability and transparency in reporting in the social sector.