 Why have UK universities become more indebted over time?Adrian Bell, Chris Brooks and Andrew Urquhart International Review of Economics & Finance, 2022, vol. 82, issue C, 771-783 Abstract: Media reports of a financial apocalypse facing some UK universities were rife around the onset of the covid-19 pandemic, with much of the blame for their apparently perilous monetary situation levelled at excessive borrowing. This study examines the extent to which higher education institutions in the UK have become more indebted over the past decade and determines the factors that explain why some universities have borrowed more than others. We find that universities with vice chancellors who are older, higher paid, and who have been in their roles for a shorter time, on average have greater levels of indebtedness. We do not observe significant relationships with institutional borrowing for the gender of the vice chancellor, or their previous experience as a deputy vice chancellor or having previously held the top role elsewhere. Among university characteristics, only the level of total assets has any explanatory power for indebtedness, and not its overall institutional ratings score, whether it is a member of the Russell Group, or its total number of students. Keywords: University finances; Higher education institutions; Indebtedness; Vice-chancellors (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:82:y:2022:i:c:p:771-783 DOI: 10.1016/j.iref.2022.08.008 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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