ERIC Number: ED231323
Record Type: RIE
Publication Date: 1983-Apr-15
The Relationship of Revenue Dispersion to Several Indicators of Institutional Financial Conditions.
Taylor, Barbara A.
The relationship between revenue dispersion and several indicators of financial condition in four-year colleges and universities was studied. Revenue dispersion is a measure of the diversity of institutional income sources. It was hypothesized that revenue dispersion would be positively related to financial condition, since variants on open-systems theory suggested that the institution with dispersed revenues should be less vulnerable to the vicissitudes of any one income source. All four-year postsecondary institutions for which the necessary Higher Education General Information Survey data were available for 1975, 1976, 1978, or 1979 were included in the study. The institutional populations ranged from 1,889 to 1,937. The following indicators were tested against revenue dispersion in a series of lagged and non-lagged regression analysis: fluctuation in revenues; level of financial reserves; constant dollars spent on instruction; and the proportion of educational and general expenditures devoted to instruction, research, and academic support. Regression results suggest that revenue dispersion is significantly, positively related to financial indicators tested in several of the non-lagged equations. By contrast, it was generally insignificant in lagged regressions. This insignificance suggested the presence of multicollinearity among the independent variables. (Author/SW)
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A
Note: Paper presented at the Annual Meeting of the American Educational Research Association (Montreal, Canada, April 11-15, 1983).