Characteristics of an Executive Manager that Contribute to Financial Efficiency in Third Sector Organizations: A Study in the Childfund Brasil Organization
DOI:
https://doi.org/10.5380/rcc.v15i3.90128Keywords:
Financial efficiency. Administrative expenses. Executive succession.Abstract
The third sector has been expanding and becoming a growing provider of services to society. As it grows, so does the demand for financial efficiency in providing services to the community. One of the indicators used to measure this financial efficiency is called administrative expenses. Thus, the objective of this work is to investigate the observable characteristics of an executive manager that contribute to financial efficiency in the third sector. Based on the theories of senior management, executive succession, and financial efficiency, we carried out a quantitative investigation that aims to identify these characteristics. Furthermore, we analyzed income Statements for the Year, from 2009 to 2018. We noted, from the fixed and random effects models, and Feasible Generalized Least Squares (FGLS), that both the participation of the board of directors and the CEO background in the process of hiring a CEO can be key factors for the financial efficiency of the organization. Furthermore, it showed that the variables involving partnerships can affect the administrative expenses indicator.
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