CAPIC REVIEW

Journal of Accounting, Auditing and Business Management

ISSN 0718-4662

logo revista Capic Review
Vol. 22 (2024): CAPIC REVIEW
Investigation

Income diversification and financial performance of chilean universities

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  • Alejandro Diaz Ramos
Alejandro Diaz Ramos
Universidad de Atacama
Bio
DOI: https://doi.org/10.35928/cr.vol22.2024.204
Categories

Published 2024-05-10

Keywords

  • Chile,
  • financial performance,
  • revenue diversification,
  • universities

How to Cite

Diaz Ramos, A. (2024). Income diversification and financial performance of chilean universities. CAPIC REVIEW, 22, 1–12. https://doi.org/10.35928/cr.vol22.2024.204

Copyright (c) 2024 Alejandro DÍaz Ramos

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Abstract

This study aimed to determine the existence of differences in financial performance among universities that demonstrate a high diversification of their income sources compared to those entities with low levels of income diversification in Chile. For this purpose, indicators were formulated using the annual audited financial reports that universities submit to regulatory bodies such as the Higher Education Information System and the Higher Education Superintendent. The study is applied to a sample of 53 institutions for the period from 2014 to 2021, thus constructing a panel of data with variables on which the non-parametric U Mann-Whitney test has been applied. Based on the research findings, it is concluded that institutions with higher income diversification would be characterized by: recording a larger size based on the total assets they manage, lower levels of indebtedness, a lower probability of facing a vulnerable financial situation, and a higher level of liquidity. However, statistically significant evidence is found that confirms that universities with high levels of income diversification generate lower operational margins compared to universities whose income sources are less diversified.

 

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