Student selectivity and higher education institutions credit ratings

Aron Gottesman and Iuliana Ismailescu

Journal of Financial Economic Policy, 2020, vol. 13, issue 1, 136-159

Abstract: Purpose - This paper aims to investigate the relation between the creditworthiness of US institutions of higher education and their student selectivity (i.e. demand and quality). Design/methodology/approach - The authors study whether the impact of student selectivity differs across public vs private universities; across the credit quality of the given public university’s state; and across the level of state appropriations for the given public university. Findings - The authors find that student quality and demand measures are significantly associated with their corresponding institution’s creditworthiness, especially for private universities. Originality/value - For public universities the association is weak and, contrary to the expectations, does not depend on the state credit quality or level of state funding. The findings are robust to the inclusion of control variables.

Keywords: Financial markets; Credit; Policy objectives; Nonprofit institutions; Ratings and rating agencies; Credit ratings; Students selectivity; Higher education; G11; I23; L31 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfeppp:jfep-10-2019-0200

DOI: 10.1108/JFEP-10-2019-0200

Access Statistics for this article

Journal of Financial Economic Policy is currently edited by Prof Franklin Mixon

More articles in Journal of Financial Economic Policy from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().