Does historical cost accounting affect foundation payout policy? - Empirical evidence from Finland

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en
dc.contributor.author Aalto, Jarkko
dc.date.accessioned 2016-08-16T11:36:04Z
dc.date.available 2016-08-16T11:36:04Z
dc.date.issued 2016
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/21514
dc.description.abstract OBJECTIVES OF THE STUDY The main purpose of the study is to study whether the choice of financial reporting approach has a significant relationship to the payout of Finnish grant making foundations. As motivation for the study were the scarcity of prior research of the subject and the less addressed economic importance of Finnish non-profit sector. The impact of financial reporting approach is examined using the book-to-market ratios of the grant-making foundations. DATA AND METHODOLOGY The main sample used in this study consists of 218 fiscal years and 109 foundations during fiscal years of 2010 and 2011. The foundations represent the largest grant-making foundations extracted from the database of 200 largest foundations in Finland. The organizational and financial data is mostly derived from a database compiled in 2014 for research and law reform of the Foundations Act in 2015. This database was furtherly checked and complemented using the financial statements as the main source of information and data. Ordinary Least Square regression is used to examine the connection between payout, determined as the scaled amount of annual distributions and independent variables, which are foundation specific determinants of payout. RESULTS The results of the conducted regression analysis show no significant relationship between book-tomarket ratio and annual payout of foundations. Thus, the effect of choice of financial reporting approach is not comprehensively confirmed. The results show that scaled market value of assets and revenues have significant and strong positive relationship with payout. General support had a significant but not a strong relationship with payout. Upon the results, the suitability of payout theories could not be confirmed regarding the payout policy of Finnish grant-making foundations. Additional analysis shows us that between different industries, there is an effect on the association between payout and determinants of the payout. en
dc.format.extent 72
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.title Does historical cost accounting affect foundation payout policy? - Empirical evidence from Finland en
dc.type G2 Pro gradu, diplomityö fi
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Business en
dc.contributor.department Laskentatoimen laitos fi
dc.contributor.department Department of Accounting en
dc.subject.keyword payout ratio
dc.subject.keyword historical cost accounting
dc.subject.keyword third sector
dc.subject.keyword grant-making foundation
dc.subject.keyword varojenjako
dc.subject.keyword historiallinen kirjanpitoarvo
dc.subject.keyword kolmas sektori
dc.subject.keyword apurahasäätiö
dc.identifier.urn URN:NBN:fi:aalto-201609083728
dc.type.dcmitype text en
dc.programme.major Laskentatoimi fi
dc.programme.major Accounting en
dc.type.ontasot Pro gradu tutkielma fi
dc.type.ontasot Master's thesis en
dc.subject.helecon tilinpäätös
dc.subject.helecon balances of books
dc.subject.helecon säätiöt
dc.subject.helecon foundations
dc.subject.helecon varallisuus
dc.subject.helecon wealth
dc.ethesisid 14692
dc.date.dateaccepted 2016-06-14
dc.location P1 I


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