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Alumni donations and university reputation

João Ricardo Faria, Frank Mixon and Kamal Upadhyaya ()

Education Economics, 2019, vol. 27, issue 2, 155-165

Abstract: The present study presents a formal model of the dynamics of a university’s reputation that points to the existence of a snowball effect where alumni donations raise a university’s reputation, which in turn generates additional alumni donations. Given that econometric results presented in this study confirm the model’s main findings, supporting a university’s financial development arm at optimal levels should receive thorough consideration by the university’s administration. Our model and empirical results also suggest that university administration should better assess the reputation-enhancing facets of an institution deemed integral by peer institutions, as these determine the outcome of its fundraising efforts.

Date: 2019
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