Fame and Transparency: Exploring the Influence of Board Chair Celebrity Status on Charities' Performance

ABSTRACT Transparency is of paramount importance for charities seeking to establish legitimacy, particularly in the eyes of donors. This study examines the impact of celebrity status of board chairs on charities' transparency and performance. By integrating signaling and resource dependence theories and leveraging data from 379 public fundraising foundations registered in mainland China, encompassing 1137 observations from 2019 to 2021, this research reveals a positive association between board chairs' celebrity status and a charity's transparency, donation income, and charitable expenses. The study also finds that transparency serves as a mediator in the relationship between board chairs' celebrity status and donation income and charitable expenses. Furthermore, this study identifies the strengthening moderating effect of charity brand awareness on the positive relationship between chairs' celebrity status and charity's transparency. These findings provide new insight into the driving force behind charity transparency and performance.