Collaboration, alliance, and merger among higher education institutions

Abstract

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 │ EDU/WKP(2017)9 COLLABORATION, ALLIANCE, AND MERGER AMONG HIGHER EDUCATION INSTITUTIONS Unclassified OECD EDUCATION WORKING PAPERS SERIES OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed herein are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works. Comments on Working Papers are welcome, and may be sent to the Directorate for Education and Skills, OECD,

An Analytical Study of Impact of International Merger and Acquisitions on the Financial Performance for Higher Education Institution in the United States

“…HEI presidents and board members believe that achieving an elevated status in the annual lists of WCU ranking organizations will aid in achieving regional, national, and global prestige and increased institutional viability (Azziz et al, 2017). Because of this HEI researchers interested in M&A activities have requested more quantitative studies to examine the effects of M&A activities on various performance metrics (Boling et al, 2017;Williams, 2017).…”

“…Other researchers specify that the criteria for M&A success or failure rests on the ability of the merger to create value in the post-merger organization (Ahammad et al, 2017;Boling et al, 2017). A third view defines failure or success of M&A initiatives based on achieving expected efficiencies and economies of scale (Williams, 2017). Therefore, researchers define failures of for-profit M&A initiatives based primarily on financial factors such as increased revenue, profit, capital, return on investment, and cost savings.…”

“…Furthermore, WCUs attract faculty and students from around the world and maintain a reputation for producing educated and competent graduates and cutting-edge research (Kipchumba et al, 2016). Williams, 2017). Finally, for many academics, improving educational opportunities, developing innovation in research, partnering with industry, and enhancing research output signify M&A success (Docampo et al, 2015;Olssen & Peters, 2007;Smeets et al, 2016).…”

“…Both sets of inquiries share the same goal of identifying HEI success. HEI M&A researchers experience a lack of consensus in defining one or more performance metrics for success because there is no "one" performance metric (Williams, 2017). Every HEI M&A event and HEI possesses unique qualities and objectives relative to the M&A initiative (Pires & Marcondes, 2017).…”

“…A review of the M&A HEI literature shows this type of study to be the predominant form of research in the M&A HEI arena. While these types of studies have value, researchers also desire quantitative longitudinal studies to objectively identify the interaction effects between time and merger status upon specific DVs (Tarba et al, 2017;Williams, 2017).…”