Publication Date
Spring 1-15-2025
Degree Level
BBA
Program
Honors
First Advisor
Belinda Roman
Second Advisor
Camille Langston
Document Type
Thesis
Medium
Thesis
Abstract
This research presents a preliminary expedition into identifying the relationship between Net Present Value (NPV) and Return on Investment (ROI) of general liberal arts institutions, Hispanic Serving Institutions (HSIs), and Historically Black Colleges and Universities (HBCUs). HSIs and HBCUs have a long tradition of serving specific underrepresented communities of color, fostering success through culturally appropriate learning environments. This research utilizes a unique business lens to discuss the value of a service-based institution, using tools such as value proposition and consumer fit, and then, it compares each set of institutions using ROI and NPV. The data, sourced from College Scorecard, Georgetown University, and Data USA, is consolidated into a unique dataset composed of four-year universities that predominantly grant bachelor’s degrees in non-rural Texas, with a small (642) to small-medium (4,547) student body, and coincidentally, religiously affiliated. The outcomes of this research reveal concerning trends. While HSIs and liberal arts institutions exhibit similar NPVs over a 40-year period, HBCUs start from a lower NPV and experience slower growth. This disparity suggests a potential financial disadvantage for HBCU graduates. Similarly, HBCUs have lower ROIs, even when compared by majors to the other institutions. This research demonstrates a disparity in post-graduation achievement and in metrics of NPV and ROI, but further research is necessary to determine where the gap originates.
Recommended Citation
Phelan, S. (2024) Investing in the Future: A Financial Comparative Study of HSIs, HBCUs, and Non-Minority Serving Liberal Arts Colleges () [Honors Thesis, St. Mary's University]. Digital Commons.
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
