| The purpose of this study is to examine the relationship between public HEI's fiscal resources and student persistence to degree completion. Consequently, building upon the studies of researchers such as Titus (2006a, 2006b), Hearn (2003a, 2003b), and Winston (1999), this study investigates the relationships between institutional organizations through a fiscal lens (revenue sources and credit ratings) and graduation rates. In order to determine the nature of these aforementioned relationships, I will use a framework shaped by resource dependence theory. This study seeks to answer two research questions: (a) What is the relationship between a public institution's credit rating and graduation rates? and (b) What is the relationship between fiscal resources and graduation rates at public HEIs? To answer these questions, I analyze Integrated Postsecondary Education Data System (IPEDS) and Moody's data from 2005 and 2007. Propensity score analysis was conducted to predict the credit rating of Public HEIs. Multiple regression was conducted to analyze the relationship between HEIs' institutional level financial variables and graduation rates. While no significant relationship was found to exist between either of the two highest institutional credit ratings (PHG and UMG) and graduation rates, significance was found to exist between graduation and percent revenue from state operating grants and contracts, percent revenue from investment income and auxiliary enterprise reliance in 2005; as well as percent revenue from tuition and fees net discounts and allowances and auxiliary enterprise reliance in 2007. |
