Financial Management Capacity, Accountability, Own Income Generation, Revenue Diversification and Financial Sustainability in Charities Of Malaysia
Malaysian charities have been reported to face problems in raising funds in the face of the current challenging economic environment. Some evidence has been provided by past research, in for-profit organisations, on the influence of accountability, financial management capacity, own income generat...
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my.unimas.ir.342102021-02-03T06:19:41Z http://ir.unimas.my/id/eprint/34210/ Financial Management Capacity, Accountability, Own Income Generation, Revenue Diversification and Financial Sustainability in Charities Of Malaysia Cheuk, Sharon Lian, Kee Phua Siti Nabiha, A.K. Salawati, Sahari Nichol, Esmie O. Michael, Tinggi H Social Sciences (General) HF5601 Accounting Malaysian charities have been reported to face problems in raising funds in the face of the current challenging economic environment. Some evidence has been provided by past research, in for-profit organisations, on the influence of accountability, financial management capacity, own income generation and revenue diversification on financial performance. This study examines their impact on non-profit financial sustainability, utilising as sample 212 active charities in 2017. The quantitative approach is adopted whereby data on financial management capacity, accountability, own income generation and revenue diversification, and their inter-relationships, were tested for strength and influence of the relationships, if any, with financial sustainability. Analysis of data was performed using the structural equation modeling method using lavaan on R. Global fit values (RMSEA = 0.00; SRMR = 0.04) showed a good model fit and standardised residuals justified retaining the model at the pairing levels of the observed variables; as such the original model is retained and not respecified. The findings suggest positive and significant indirect relationships between financial management capacity and accountability with the financial sustainability, as mediated by revenue diversification and own income generation. The implications and contributions arising from the findings are also discussed. Keywords: financial sustainability, financial management capacity, accountability, own income generation, revenue diversification, charities, Malaysia Universidad de Almería 2020 Article PeerReviewed text en http://ir.unimas.my/id/eprint/34210/1/Financial%20Management%20Capacity%2C%20Accountability%2C%20Own%20Income%20Generation%2C%20Revenue%20Diversification%20and%20Financial%20Sustainability%20in%20Charities%20Of%20Malaysia.pdf Cheuk, Sharon and Lian, Kee Phua and Siti Nabiha, A.K. and Salawati, Sahari and Nichol, Esmie O. and Michael, Tinggi (2020) Financial Management Capacity, Accountability, Own Income Generation, Revenue Diversification and Financial Sustainability in Charities Of Malaysia. Studies of Applied Economics, 38 (3(2)). pp. 1-18. ISSN 1133-3197 http://ojs.ual.es/ojs/index.php/eea/article/view/4279/4284 10.25115/eea.v38i3%20(2).4279 |
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H Social Sciences (General) HF5601 Accounting Cheuk, Sharon Lian, Kee Phua Siti Nabiha, A.K. Salawati, Sahari Nichol, Esmie O. Michael, Tinggi Financial Management Capacity, Accountability, Own Income Generation, Revenue Diversification and Financial Sustainability in Charities Of Malaysia |
description |
Malaysian charities have been reported to face problems in raising funds in the face of the current challenging
economic environment. Some evidence has been provided by past research, in for-profit organisations, on the
influence of accountability, financial management capacity, own income generation and revenue diversification on financial performance. This study examines their impact on non-profit financial sustainability, utilising as sample 212 active charities in 2017. The quantitative approach is adopted whereby data on financial management capacity, accountability, own income generation and revenue diversification, and their inter-relationships, were tested for strength and influence of the relationships, if any, with financial sustainability. Analysis of data was performed using
the structural equation modeling method using lavaan on R. Global fit values (RMSEA = 0.00; SRMR = 0.04) showed
a good model fit and standardised residuals justified retaining the model at the pairing levels of the observed
variables; as such the original model is retained and not respecified. The findings suggest positive and significant indirect relationships between financial management capacity and accountability with the financial sustainability, as mediated by revenue diversification and own income generation. The implications and contributions arising from the findings are also discussed.
Keywords: financial sustainability, financial management capacity, accountability, own income generation, revenue
diversification, charities, Malaysia |
format |
Article |
author |
Cheuk, Sharon Lian, Kee Phua Siti Nabiha, A.K. Salawati, Sahari Nichol, Esmie O. Michael, Tinggi |
author_facet |
Cheuk, Sharon Lian, Kee Phua Siti Nabiha, A.K. Salawati, Sahari Nichol, Esmie O. Michael, Tinggi |
author_sort |
Cheuk, Sharon |
title |
Financial Management Capacity, Accountability, Own Income
Generation, Revenue Diversification and Financial
Sustainability in Charities Of Malaysia |
title_short |
Financial Management Capacity, Accountability, Own Income
Generation, Revenue Diversification and Financial
Sustainability in Charities Of Malaysia |
title_full |
Financial Management Capacity, Accountability, Own Income
Generation, Revenue Diversification and Financial
Sustainability in Charities Of Malaysia |
title_fullStr |
Financial Management Capacity, Accountability, Own Income
Generation, Revenue Diversification and Financial
Sustainability in Charities Of Malaysia |
title_full_unstemmed |
Financial Management Capacity, Accountability, Own Income
Generation, Revenue Diversification and Financial
Sustainability in Charities Of Malaysia |
title_sort |
financial management capacity, accountability, own income
generation, revenue diversification and financial
sustainability in charities of malaysia |
publisher |
Universidad de Almería |
publishDate |
2020 |
url |
http://ir.unimas.my/id/eprint/34210/1/Financial%20Management%20Capacity%2C%20Accountability%2C%20Own%20Income%20Generation%2C%20Revenue%20Diversification%20and%20Financial%20Sustainability%20in%20Charities%20Of%20Malaysia.pdf http://ir.unimas.my/id/eprint/34210/ http://ojs.ual.es/ojs/index.php/eea/article/view/4279/4284 |
_version_ |
1691736573625761792 |
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13.160551 |