Implications of Being a Highly Rated Organization: Evidence from Four-Star Rated Nonprofits

This study examines a group of nonprofits rated four stars by Charity Navigator. The purpose is to determine whether this select group of charities exhibits characteristics associated with top charitable organizations, or whether the four-star rating achieved is limited to the more narrow financial metrics employed in the methodology utilized by Charity Navigator. This study finds that organizations rated four stars by Charity Navigator show a lower level of excess cash holdings, report a lower level of compensation expenses and exhibit lower sensitivity of compensation to performance. Financially, these organizations are less vulnerable than their lower rated peers. The results from this study shed light on the continuing debate of the effectiveness of rating agencies to accurately identify top performing charitable organizations

Audit Quality Indicators: Perceptions of Junior-level Auditors

Purpose In an effort to develop an audit quality (AQ) framework specific to the US audit market, the Public Company Accounting Oversight Board (PCAOB) recently issued a concept release proposing 28 audit quality indicators (AQIs) along three dimensions: audit professionals, audit process and audit results. Using AQIs initially proposed by the PCAOB, as well as AQIs suggested by prior literature, the authors solicit perceptions from junior-level (senior and staff) auditors to investigate the current state of practice along many of the AQIs relating to audit professionals and audit process. Design/methodology/approach In the study, 78 junior-level auditors responded to the survey. Findings An analysis of the responses suggests auditors engage in activities and audit firms promote conditions that at times improve, and at other times, reduce audit quality. The authors find that individual auditors’ perceptions differ across experience level, gender and audit firm size for certain AQIs. Practical implications The study is useful to the PCAOB because it provides insights to help assess the value of potential AQIs in differentiating AQ. The study is also useful to other regulators because it describes audit staff and seniors’ perceptions of apparent firm and auditor compliance with accounting and auditing standards. Practitioners should find this information useful in helping to identify possible root causes of audit deficiencies, a challenge put forth to firms by the PCAOB. Originality/value This study provides academia with evidence on AQ from practicing auditors, which informs existing and future research along. The study complements existing work by showing how individual auditor characteristics (experience and gender) at the junior levels may impact AQ in practic

Using Archival Data Sources to Conduct Nonprofit Accounting Research

Research in nonprofit accounting is steadily increasing as more data is available. In an effort to broaden the awareness of the data sources and ensure the quality of nonprofit research, we discuss archival data sources available to nonprofit researchers, data issues, and potential resolutions to those problems. Overall, our paper should raise awareness of data sources in the nonprofit area, increase production, and enhance the quality of nonprofit research

Playing the Ratings Game: The Significance of the Four Star Rating

This study examines a group of exemplary rated nonprofits, organizations rated four stars by Charity Navigator, to determine if this select group of charities exhibits characteristics associated with top charitable organizations, or if the four-star rating achieved is limited to the more narrow financial metrics employed in the methodology utilized by Charity Navigator. Organizations rated four stars by Charity Navigator report a lower level of excess cash holdings, report lower levels of executive compensation and executive compensation that is less sensitive to performance, and are less financially vulnerable than their lower rated peers. The results shed light on the continuing debate of the effectiveness of the rating agencies to accurately identify top performing charitable organizations

The Adoption and Use of the Hirschman–Herfindahl Index in Nonprofit Research: Does Revenue Diversification Measurement Matter?

Since its introduction by Tuckman and Chang, the Hirschman–Herfindahl Index (HHI) has been widely adopted into the nonprofit literature as a precise measure of revenue concentration. This widespread adoption has been characterized by diverse composition, with the HHI’s calculation being largely determined by the nature of the available data and the degree to which it contained disaggregated measures of revenue. Using the NCCS 990 Digitized Data, we perform an acid test on whether different HHI measures yield significantly different results. Four measures of revenue concentration—an aggregated measure based on three revenue streams, an aggregated measure separating government grants from other contributions, a more nuanced measure based on seven revenue streams, and a fully disaggregated measure based on thirteen revenue streams—are used to predict two dominant nonprofit financial health dimensions: financial volatility and financial capacity. Overall, our results show that aggregation in HHI measurement matters; aggregation often downplays relationships by influencing the significance levels and magnitudes of estimates in a non-trivial way

Nonprofit and Voluntary Sector Quarterly XX(X)

Abstract Several econometric issues arise in using nonprofit data. After controlling for unduly influential observations and heteroskedasticity, regression analysis performed on National Center for Charitable Statistics "digitized data" from 2001 to 2003 found mixed evidence of economically significant associations between donations and other revenue streams; regressions without these controls support different conclusions. Testing does indicate that government support sends greater quality signals than program support or investment income

Utilization of a Piezoelectric Polymer to Sense Harmonics of Electromagnetic Torque

In this paper, the use of a piezoelectric polymer material to measure the harmonics of electromagnetic torque produced by a permanent magnet synchronous machine is described. The advantages of the polymer include low cost, durability, and flexibility. In addition, wide-bandwidth sensors are relatively easy to design and couple to drive system hardware for harmonic evaluation or to use in feedback-based control. To illustrate the use of the polymer, the electrical and mechanical properties of three sensors are described. The results of time-domain simulation and hardware experiments are used to validate that the voltage obtained from the sensors is linearly related to the torque ripple produced by the machine

Measurement and Control of Torque Ripple-Induced Frame Torsional Vibration in a Surface Mount Permanent Magnet Machine

A sensor to measure the stator torsional vibration due to torque ripple produced by a surface mount permanent magnet machine is first described. The sensor is relatively inexpensive and is straight forward to incorporate into a drive system. Experiments are performed to validate that the voltage produced by the sensor is linearly related to torque ripple amplitude. Closed-loop controllers are then described that adjust the stator current harmonics applied to the machine to achieve a commanded average torque while mitigating measured torsional vibration. Simulation and experimental results are used to demonstrate the effectiveness of the control techniques

Torque Ripple Sensor and Mitigation Mechanism

A torque ripple sensor and method for torque ripple sensing and/or mitigation. A piezoelectric sensor is positioned relative to a motor so that torque fluctuations due to torque ripple of the motor are transmitted to the sensor, resulting in strain of a piezoelectric element. A resulting signal can be amplified and conditioned for determining a magnitude of the torque ripple and/or fed into a feedback loop for applying current control or a counter-torque to the motor for torque ripple mitigation

Multisite study assessing the effect of cognitive test anxiety on academic and standardized test performance

Objective. To evaluate the degree of cognitive test anxiety (CTA) present in student pharmacists at multiple pharmacy programs in the United States and to determine if there are associations between self-reported CTA and relevant academic outcomes. Methods. All 2018-2019 advanced pharmacy practice experience (APPE) students from three US Doctor of Pharmacy (PharmD) programs (N=260) were invited to participate in the study. Participants completed a validated 37-question survey that included the Cognitive Test Anxiety Scale-2 (CTAS-2) along with demographics-related questions. Responses were analyzed using analysis of variance (ANOVA), Kruskal Wallace, and multiple linear regression where appropriate. Results. One hundred twenty-four students (48%) from the three programs participated in the study, and the individual data of 119 (46%) were included in the final analysis. Twenty-two students (18.5%) were classified as having high CTA, 41 (34.5%) as having moderate CTA, and 56 (47.1%) as having low CTA. High CTA predicted a 8.9 point lower NAPLEX total scaled score after accounting for other variables and was also correlated with lower cumulative didactic GPA, performance on the Pharmacy Curriculum Outcomes Assessment (PCOA), and increased likelihood of requiring course remediation. Conclusion. High cognitive test anxiety affects 18% of pharmacy students and may significantly impact their performance on a variety of traditional student success measures, including the NAPLEX. Pharmacy educators should consider further use and adoption of test anxiety measurements to identify and assist potentially struggling students