Predicting Organizational Mortality: How Financial Management Matters

Young Joo Park, Jongmin Shon, Jiahuan Lu

Research output: Contribution to journalArticlepeer-review

Abstract

Managing financial resources is one of the most important responsibilities of every organization; however, the literature still cannot provide an answer to an important question: how does financial health matter to organizational mortality, especially for nonprofit organizations? To advance our knowledge in this regard, this study empirically examines the effects of solvency, profitability, margin, and liquidity on nonprofit dissolution. Higher solvency, profitability, and margin have significant effects on reducing the likelihood of nonprofit dissolution, but liquidity does not function as a significant predictor.

Original languageEnglish (US)
JournalAdministration and Society
DOIs
StateAccepted/In press - 2021

All Science Journal Classification (ASJC) codes

  • Sociology and Political Science
  • Public Administration
  • Marketing

Keywords

  • event history analysis
  • financial health
  • nonprofit dissolution
  • organizational mortality

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