The Introduction of Public Service Corporation Accounting Standards and Changes of Financial Reporting Quality and Donations by Donor Type

[Purpose] This study examines the relationship between the introduction of Public Service Corporation Accounting Standards(PSCAS) and changes of financial reporting quality and donations by donor type as important factors in changing the accounting environment for nonprofit organizations(NPOs). Despite the increasing social role and importance of NPOs, the accounting system and accounting environment have not been able to properly support them and voices for improvement have been raised. The Ministry of Economy and Finance enacted the PSCAS in 2018 to meet social needs. In the field of for － profit organizations, empirical studies on the impact of the introduction of Korean International Financial Reporting Standards(K－IFRS) on the accounting environment and system have been actively conducted from various angles, whereas related nonprofit studies have hardly been conducted in Korea. [Methodology] To conduct empirical analyses, this study collected the data of NPOs from 2015 to 2020 in Korea Guide Star and the National Tax Service disclosure system and performed a multivariate regression analysis. [Findings] From the empirical analyses, first, the results show that the financial reporting quality changes with the introduction of PSCAS and the empirical analyses of dividing data by public service type also show the same results. These results mean that the accounting system and accounting information are closely related. Second, the results show that individual donations increase after the introduction of PSCAS but there is no significant change in corporate donations or total donations. These mean that there is a difference between individual and corporate donations according to the introduction of PSCAS. [Implications] This study can provide empirical evidence to policy makers and disclosure supervisory authorities for the introduction of PSCAS. It also can provide good implications for future empirical research on the accounting environment for NPOs and donations by donor type.