Comparative Financial Analysis of HSIs, HBCUs, and Liberal Arts Colleges: Net Present Value and Return on Investment Perspectives
Files
Publication Date
Fall 2024
Digital Publisher
Digital Commons at St. Mary's University
Collection
McNair Scholars Symposium
Keywords
Hispanic Serving Institutions (HSIs); Historically Black Colleges and Universities (HBCUs); Liberal Arts; Return on Investment (ROI); Net Present Value (NPV); Value Proposition
Description
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, 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. An important note is that on average the black student body population in this data set, as well as across Texas, tend to be smaller than the Hispanic student population which could affect the data and the overall performance of HBCUs. The preliminary outcomes of this research reveals 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, in metrics of NPV and ROI, but further research is necessary to determine where the gap originates.
Disciplines
Business Administration, Management, and Operations | Business Analytics | Nonprofit Administration and Management
Format
MOV
Medium
video
Size or Duration
15 minutes, 41 seconds
City
San Antonio, Texas
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
