Factors that Affect the Commitment of Charities to the Charity Governance System: An Applied Study in Saudi Arabia

Abstract

This study aims to examine the factors that affect charities' commitment to the charity's governance system. The study assumes that the size of the board of directors, the independence of the board, and CEO Duality affect the charities' commitment to the governance system. In building the methodology, the study relied on the system of charity governance and the agency's theories and stakeholders. The study population consists of charities in the Kingdom of Saudi Arabia. The study sample consisted of 145 questionnaires distributed to officials and workers in charities. The study used multiple linear regression to study the relationship between the variables.  The study found that the large board of directors positively affects the commitment of charities to the standard of transparency and disclosure and indicators of financial regulation. Also, the independence of the Board positively affects the charities' commitment to the compliance and commitment standard, the transparency and disclosure standard, and the financial regulation indicators. While the presidency of the Executive Director of the Board of Directors reduces the charities' commitment to the charity's governance system.

Keywords: governance system, charities, standards, compliance and commitment, transparency and disclosure, financial safety, board of directors, independence, management.

DOI: 10.7176/RJFA/13-10-03

Publication date:May 31^st 2022