The Relationship between Donor Behavior and Financial Statements in Japan

This presentation treats donor behavior as a kind of consumer behavior. This presentation aim to contribute not only to Japan but also to other countries where NFPs are untrusted. Questionnaire method was used and revealed donor in Japan want reliability on basic accounting information. The background seems that most Japanese managers of NFPs do not have knowledge of accounting and donors in Japan cannot rely on financial statements made by such managers. Education should be the measure against this problem. Questionnaire method showed insightful results for accounting researchers. The problem which donors in Japan are confronting is reliability of basic accounting information different from donors in the U.S. Other countries where trust to NFPs are low can also improve trust by accounting education in higher educational institutions. Thus, this presentation will help researchers of consumer behavior to understand that managers'accounting knowledge is a factor consisting of trust in countries where trust to NFPs are sufficient such as South Korea and Mainland China.