An expected or budgeted decrease in revenue is referred to as lost
income. For universities to remain financially sustainable and to guarantee the
ongoing provision of high-quality education and research, it is imperative that
they have a thorough understanding of the causes and effects of lost income.
The main reason for lost income, particularly for universities, is the decline
in student enrollment and the state of the economy. In this study, we propose a
methodology to measure the lost income. The methodology examines the financial
report of the National University of Mongolia (NUM) from 2016 to 2022. In the
case of NUM, the percentage of the lost income is 8 percent.
References
[1]
Al Kharusi, S. (2017). Financial Sustainability of Private Higher Education Institutions: The Case of Publicly Traded Educational Institutions. Investment Management & Financial Innovations, 14, 25-38. https://doi.org/10.21511/imfi.14(3).2017.03
[2]
Aristovnik, A., Keržič, D., Ravšelj, D., Tomaževič, N., & Umek, L. (2020). Impacts of the COVID-19 Pandemic on Life of Higher Education Students: A Global Perspective. Sustainability, 12, Article No. 8438. https://doi.org/10.3390/su12208438
[3]
Baer, J., & Martel, M. (2020). International Student Enrollment Snapshot. Institute of the International Education.
[4]
Bhattacharyya, R. (2019). Lost Income in the UK University Sector. Higher Education Quarterly, 73, 407-423.
[5]
Bolton, P., & Hubble, S. (2021). Coronavirus: Financial Impact on Higher Education. UK Government: House of Commons Library.
[6]
Chen, W. B., & He, L. Y. (2018). Cause Analysis and Management Control Research on Financial Risk of University. Journal of Discrete Mathematical Sciences & Cryptography, 21, 1329-1334. https://doi.org/10.1080/09720529.2018.1526761
[7]
Estermann, T., Bennetot Pruvot, E., Kupriyanova, V., & Stoyanova, H. (2020). The Impact of the Covid-19 Crisis on University Funding in Europe. European University Association ASBL: Brussels, Belgium.
[8]
Friga, P. N. (2020). Under Covid-19, University Budgets like We’ve Never Seen before. The Chronicle of Higher Education.
[9]
Lapovsky, L. (2013). The Higher Education Business Model. TIAA-CREF.
[10]
Mihai, M. (2017). Alternative Measure in the Efficiency of Investments Evaluation. International Journal of Sustainable Economies Management, 6, 35-42.
https://doi.org/10.4018/IJSEM.2017100104
[11]
Mikes, A., & Kaplan, R. S. (2015). When One Size Doesn’t Fit All: Evolving Directions in the Research and Practice of Enterprise Risk Management. Journal of Applied Corporate Finance, 27, 37-41. https://doi.org/10.1111/jacf.12102
[12]
Negash, S., Kartschmit, N., Mikolajczyk, R. T., Watzke, S., Matos Fialho, P. M., Pischke, C. R., & Schmidt-Pokrzywniak, A. (2021). Worsened Financial Situation during the COVID-19 Pandemic Was Associated with Depressive Symptomatology among University Students in Germany: Results of the COVID-19 International Student Well-Being Study. Frontiers in Psychiatry, 12, Article ID: 743158.
https://doi.org/10.3389/fpsyt.2021.743158
[13]
OECD. Centre for Educational Research and Innovation (CERI) (2009). Higher Education to 2030: Volume 2: Globalisation. OECD, Paris, France.
[14]
Ran, L. (2019). Financial Risk Assessment and Response in Practice: A Case Study of the Listed Company Shenhuo Group. In Proceedings of the 2019 International Conference on Economic Management and Cultural Industry (ICEMCI 2019) (pp. 448-453). Atlantis Press.
[15]
Robert, K., Dubravka, R., & Douglas, W. (2021). The Lingering Fiscal Effects of the COVID-19 Pandemic on Higher Education. Consumer Finance Institute Discussion Paper Series.
[16]
Sergei, P. S., Ekaterina, E. K., Irina, A. C., & Elena, A. P. (2015). Evaluating Financial Sustainability of Higher Education Institutions. Asian Social Science, 11, 34-40.
[17]
Wang, C. Y. et al. (2020). Risk Management of COVID 19. Journal of Risk and Financial Management, 13, 36-42. https://doi.org/10.3390/jrfm13020036
[18]
Zhu, H., & Chen, J. (2010). Analysis of External Risks and Prevention Pattern of Fund Raising of Private Universities. In 7th International Conference on Innovation & Management (pp. 1743-1746).
