HBCU efficiency and endowments: An exploratory analysis

Abstract

Discussions of effi ciency among Historically Black Colleges andUniversities (HBCUs) are often missing in academic conversations. This article seeks to assess effi ciency of individual HBCUs using Data Envelopment Analysis (DEA), a non-parametric technique that can synthesize multiple inputs and outputs to determine a single effi ciency score for each institution. The authors hypothesized that institutions with higher endowments will have higher effi ciency scores due to an increased ability to acquire more productive capital. To test this hypothesis, effi ciency scores were regressed on endowments and HBCU status, with control variables denoting if institutions are public or religiously affi liated. From DEA, we found that HBCUs were on average slightly more effi cient that Predominantly White Institutions. Endowment levels were found to be signifi cant determinants of effi ciency for both sets of institutions. This suggests (1) that the general perception of HBCUs as ineffi cient requires reconsideration and (2) that schools with the most endowment resources are generally more effi cient. Less effi cient HBCUs should perhaps devote resources to building endowment levels to increase effi ciency. We can also see the importance of methodologies allowing for investigation of both differences among HBCUs and differences in operational contexts among HBCUs and other schools.

An HBCU-Based Educational Approach for Black College Student Success: Toward a Framework with Implications for All Institutions

“…In addition to those differences, research indicates that HBCUs are imperfect, as are all colleges and universities. Some have difficulty communicating clear vision (Abelman and Dalessandro 2009;Guy-Sheftall 2006) or gaining positive media coverage for their accomplishments (Gasman and Bowman 2011), questionable and/or misunderstood leadership and governance (Gasman 2011;Gasman et al 2007;Minor 2004Minor , 2008, unstable financial solvency compared to majority schools due in part to their historical legacy of marginalization and the predominant socioeconomic demographics of their students (Coupet and Barnum 2010;June 2003), and a continued need to improve the experiences of black undergraduate men (Kimbrough and Harper 2006) as well as lesbian, gay, bisexual, and transgender students (LGBT ;Ford 2007;Patton 2011;Patton and Simmons 2008). To pretend they are homogeneous or perfect would be to disregard reality, and it goes against the objective of our theory.…”

Integrating Organizational Economics and Resource Dependence Theory to Explain the Persistence of Quasi Markets

“…Funding withdrawal has direct and relevant consequences for the efficiency of universities, such as whether or not investments that enable scale economies are affordable (Coupet and Barnum 2010). More important, though, is that external organizations have many ways to wield power, including pushing for (or sometimes simply making) structural changes that directly affect the quality and quantity of inputs used relative to output, thereby affecting productive efficiency.…”

Integrating Organizational Economics and Resource Dependence Theory to Explain the Persistence of Quasi Markets

“…Funding withdrawal has direct and relevant consequences for the efficiency of universities, such as whether or not investments that enable scale economies are affordable (Coupet & Barnum, 2010). More important, though, is that external organizations have many ways to wield power, including pushing for (or sometimes simply making) structural changes that directly affect the quality and quantity of inputs used relative to output, thereby affecting productive efficiency.…”