Logo image
Back
Disentangling the antecedents of higher education mergers
Dissertation   Open access

Disentangling the antecedents of higher education mergers

Gary Huff
Doctor of Business Administration (D.B.A.), Drexel University
Jun 2024
DOI:
https://doi.org/10.17918/00010570
pdf
Huff_Gary_20246.74 MBDownloadView
PDF Open Access Open Access (License Unspecified)

Abstract

Education, Higher Universities and colleges--Mergers Accounting
Change is rapidly transforming the higher education market in the United States. Driven by declining birth rates following the 2008 Great Recession, a looming "demographic cliff" in 2026, growing student skepticism about the value of a college education, and stagnant public funding for higher education are creating significant challenges. The market is already reacting, with closures dominating the headlines. A recent Washington Post headline, "Colleges are now closing at a pace of one a week." However, mergers are emerging as a potential alternative to closures. The Washington Post article lists five mergers announced during the 2023-24 academic year. This study addresses a gap in the existing research by concurrently analyzing operational and economic factors influencing the recent increase in higher education institution (HEI) merger transactions. Prior studies have primarily analyzed these factors in isolation. This study identifies key variables driving the recent rise in HEI mergers by employing a probit regression model with ten years of longitudinal data from IPEDS. Understanding these factors can inform strategic decision-making for HEI leaders, potentially leading to mergers that can strengthen the future of higher education and preserve student access. The study identified six factors contributing to the current wave of mergers: tuition dependency, institution size, declining enrollment, student retention, and sufficient available net assets to support operations.

Metrics

29 File views/ downloads
34 Record Views

Details

Logo image