Management Control Systems and Financial Performance of Non-Profit Organizations in Nigeria: An Empirical Investigation
Author(s)
Akinola, Akinwumi Olusegun , Ayorinde, Florence Mojisola , Samuel, Samson Ojeme ,
Download Full PDF Pages: 13-23 | Views: 24 | Downloads: 12 | DOI: 10.5281/zenodo.10674393
Abstract
This paper investigated the influence of management control systems on the financial performance of non-profit organizations operating in the Nigeria. The article was established on agency and contingency theories. Secondary data were collected from the annual accounts and reports of ten selected non-profit organizations (NPOs) in Nigeria for a ten-year period spanning from 2013 to 2022. Multiple regression models, including pooled least squares, fixed effects, and random effects, were employed for data analysis, accompanied by descriptive statistics. The findings indicated that fundraising costs exhibit a negative and statistically insignificant effect on financial performance. Conversely, the regularity of management meetings demonstrated a positive and statistically significant effect on financial performance, while effective control of program expenses showed a positive and statistically significant effect on the financial performance of non-profit organizations in Nigeria. In conclusion, this study revealed that management control systems have varying impacts on the financial performance of non-profit organizations in Nigeria. It is advisable for their executive teams to prioritize the establishment of robust management control systems. This will not only strengthen their organization's financial performance but also amplify their societal impact.
Keywords
Financial performance, management control systems, non-profit organizations
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