Financial sustainability of a Ukrainian university due to the COVID-19 pandemic: A calculative approach
-
Author(s)Olena KapustianLink to ORCID Index: https://orcid.org/0000-0002-2629-0750
,
Yuliia PetlenkoLink to ORCID Index: https://orcid.org/0000-0001-5984-5145
,
Anton RyzhovLink to ORCID Index: https://orcid.org/0000-0003-4099-0742
,
Ganna KharlamovaLink to ORCID Index: https://orcid.org/0000-0003-3614-712X
-
DOIhttp://dx.doi.org/10.21511/imfi.18(4).2021.28
-
Article InfoVolume 18 2021, Issue #4, pp. 340-354
- Cited by
- 660 Views
-
217 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
In 2020, due to the COVID-19 pandemic, university funding in Ukraine suffered significant losses due to unprecedented quarantine measures. The challenge for universities is to diversify funding sources, develop effective approaches to minimize existing and prevent future threats to ensure their financial stabilization (sustainability) in the post-pandemic period. The paper aims to consider financial sustainability of a university (the case of Taras Shevchenko National University of Kyiv) due to COVID-19 using the objective calculative approach on the statistical sample of data for 2011–2020. The tasks for achieving the aim are seen in determining, using regression methods, the number of lost receipts from general and special funds in the short and medium term, which will maintain a constant value of receipts at constant assets. The main idea of the paper is that financial sustainability is considered as a condition, and stabilization is considered as a process towards stability/sustainability.
The modeling approach reveals a fragile list of factors for the future preventing measures of the University to sustain. It is estimated that the University’s top management should consider financial strategy in dollar terms only. The challenge is that funding in hryvnia seems to be quite increasing and linear, but indeed, funding of the University is non-linear and has a quite intensive downward trend. Thus, for the financial sustainability strategy, this fact should be crucial.
The results indicate the need for a significant increase in university funding to mitigate the impact of macroeconomic instability due to various crises, including the COVID-19 pandemic.
Acknowledgment
The study is carried out under the grant funded from the National Research Fund of Ukraine within the competition Science for Human Security and Society, topic 2020.01/0265.
- Keywords
-
JEL Classification (Paper profile tab)I22, C01
-
References48
-
Tables4
-
Figures4
-
- Figure 1. Change in the amount of funding of the University under the general and special fund, UAH mln, 2011–2020
- Figure 2. Change in the amount of funding of the University under the general and special fund, USD mln, 2011–2020
- Figure 3. Dynamics (2011–2020) and short-term forecast (2021–2023) of the amount of the University’s funding under the general and special fund, USD mln
- Figure 4. Dynamics (2011–2020) and medium-term forecast (2021–2025) of the amount of the University’s funding under the general and special fund, USD mln
-
- Table 1. Average data on funding of the University
- Table 2. Absolute and relative indicators for funding of the University, 2011–2020
- Table 3. Estimated financing for the University during 2021–2025
- Table 4. Linear regression modeling and Ramsey RESET test
-
- Adamenko, I. (2019). Financial stabilization in economic transformations. University Economic Bulletin, 43, 126-133.
- Adams, W. (1977). Economic Problems Confronting Higher Education: Financing Public. The American Economic Review, 67(1).
- Alferov, V. (2014). Antikrizisnyye mekhanizmy finansovoy stabilizatsii i razvitiya organizatsii [Anti-crisis mechanisms of financial stabilization and development of the organization]. Strategicheskiye resheniya i risk-menedzhment – Strategic decisions and risk management. (In Russian).
- Bilinets, M. Yu., Bilinets, M. Yu., Buryachenko, A. E., Buryachenko, A. E., Paentko, T. V., & Paentko, T. V. (2021). Financing higher education in Ukraine in the XXI century: challenges and prospects for overcoming them.
- Bloom, D. E., & Canning, D. (2004). Epidemics and economics: Interactions between global change and human health. Scripta Varia, 106, 304-331.
- Cavallo, E., Galiani, S., Noy, I., & Pantano, J. (2013). Catastrophic natural disasters and economic growth. Review of Economics and Statistics, 95(5), 1549-1561.
- Cernostana, Z. (2018). Measuring financial sustainability of private higher education institutions. Engineering for Rural Development, 1173-1178.
- Das, P. (2019). Econometrics in Theory and Practice (574 p.). Springer.
- Davoodi, H. R., Tiongson, E. R., & Asawanuchit, S. S. (2003). How useful are benefit incidence analyses of public education and health spending? (IMF Working Paper WP/03/227). Washington, DC: International Monetary Fund.
- Donald, J. M. (1980). Financial reform and stabilization policy in a developing economy. Journal of Development Economics, 7(3), 359-395.
- Drayton, E., & Waltmann, B. (2020). Will universities need a bailout to survive the COVID-19 crisis? The Institute for Fiscal Studies.
- Estermann, T., & Bennetot Pruvot, E. (2011). Financially Sustainable Universities II. European Universities Diversifying Income Streams. Brussels: European University Association.
- Geiger, R. (2010). Impact of the financial crisis on higher education in the United States. International Higher Education.
- Giofré, M. (2017). Financial education, investor protection and international portfolio diversification. Journal of International Money and Finance, 71, 111-139.
- Grossi, G., Dobija, D., & Strzelczyk, W. (2019). The Impact of Competing Institutional Pressures and Logics on the Use of Performance Measurement in Hybrid Universities. Public Performance & Management Review.
- Hamilton, J. D. (2020). Time series analysis. Princeton University Press.
- Ignatyuk, A., Dikiy, A., Shevtsiv, L., Petlenko, Y., Klymash, N., & Zaitsev, O. (2021). Determination of the Company’s Value under the Influence of Various Factors. Journal of Optimization in Industrial Engineering, Special issue, 127-133.
- Keegan, D. (1996). Foundations of Distance Education (3rd ed.). Routledge.
- Kohtamäki, V. (2009). Financial Autonomy in Higher Education Institutions – Perspectives of Senior Management of Finnish AMK Institutions. Tampere: Tampere University Press.
- Kovalenko, Y., & Popovych, L. (2018). Financing of higher education institutions: problems and directions of improvement in Ukraine. Problems and Prospects of Economics and Management, 1(13), 150-159.
- Kretovics, M. A., & Steve, O. M. (2005). Financing Higher Education in a Global Market. Algora, 314.
- Leshanych, L., Miahkykh, I., & Shkoda, M. (2018). Models Of Financing Of Higher Education Institutions In Foreign Countries. Baltic Journal of Economic Studies, 4(5), 145-150.
- Maassen, P. (2000). Models of Financing Higher Education in Europe, Center for Higher Education Policy Studies (CHEPS) University of Twente.
- Martínez-Campillo, A., & Fernández-Santos, Y. (2020). The impact of the economic crisis on the (in)efficiency of public Higher Education institutions in Southern Europe: The case of Spanish universities. Socio-Economic Planning Sciences, 71, 100771.
- Ministry of Education and Science of Ukraine. (n.d.). Stratehiia rozvytku vyshchoi osvity v Ukraini na 2021–2031 roky [Strategy for the development of higher education in Ukraine for 2021–2031]. (In Ukrainian).
- Nakonechnyi, O., Pashko, A., Kapustian, O., Zinko, T. & Shevchuk, I. (2019). Proceedings of the 2019 IEEE International Conference on Advanced Trends in Information Theory (ATIT-2019). Kyiv, Ukraine.
- Onuoha, L. (2013). Financing Higher Education in Nigeria: The Role of Internally Generated Revenues and How University Managements Can Maximize the Sources. Canadian Social Science, 9(1), 9-14.
- Patel, K., & Assaf, F. (2013). Improving Financial Stability for Community College Students. John F. Kennedy School of Government.
- Petlenko Yu., Pohribna N., & Biliavska O. (2021). The new approach to budgeting in modern universities. The Scientific Heritage, 3(66), 3-6.
- Petlenko, Y., Stavytskyy, A., & Kharlamova, G. (2021). Is the endowment fund a panacea for the financial autonomy of classical universities in Ukraine? Problems and Perspectives in Management, 19(3), 396-407.
- Publications Office of the European Union. (n.d.). The impact of COVID-19 on higher education. A review of emerging evidence: analytical report.
- Ryzhov, A. Y. (2006). A test of the hypothesis about the homogeneity of components of a mixture with varying concentrations by using censored data. Theory of Probability and Mathematical Statistics, 72, 145-155.
- Schinasi, G. J. (2004). Defining Financial Stability (IMF Working Papers, 2004(187), A001).
- Slovo i Dilo. Analytical Portal. (n.d.). Education financing: how much the state spends on Ukrainian universities. (In Ukrainian).
- Smalley, A. (2021). Higher Education Responses to Coronavirus (COVID-19).
- Stachowiak-Kudła, M., & Kudła, J. (2017). Financial regulations and the diversification of funding sources in higher education institutions: selected European experiences.
- Stein, M., Braun, W., Villà, M. S., & Binding, V. (2014). Monte Carlo Cash Flows and Sustainability: How to Decide on Going Green. The Journal of Sustainable Real Estate, 6(1), 143-162.
- Taras Shevchenko National University of Kyiv. (2012). Zvit rektora Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka Guberskogo L. V. pro robotu z hrudnia 2011 roku po hruden 2012 roku ta zavdannia na nastupnyi rik [Report of the Rector of the Taras Shevchenko National University of Kyiv L. V. Gubersky on the work from December 2011 to December 2012 and tasks for the next year]. Kyiv: TSNUK. (In Ukrainian).
- Taras Shevchenko National University of Kyiv. (2013). Zvit rektora Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka Guberskogo L. V. pro robotu z hrudnia 2012 roku po hruden 2013 roku ta zavdannia na nastupnyi rik [Report of the Rector of the Taras Shevchenko National University of Kyiv L. V. Gubersky on the work from December 2012 to December 2013 and tasks for the next year]. (In Ukrainian).
- Taras Shevchenko National University of Kyiv. (2014). Zvit rektora Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka Guberskogo L. V. [Report of the Rector of the Taras Shevchenko National University of Kyiv L. V. Gubersky]. (In Ukrainian).
- Taras Shevchenko National University of Kyiv. (2015). Zvit rektora Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka Guberskogo L. V. [Report of the Rector of the Taras Shevchenko National University of Kyiv L. V. Gubersky]. (In Ukrainian).
- Taras Shevchenko National University of Kyiv. (2016). Zvit rektora Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka Guberskogo L. V. [Report of the Rector of the Taras Shevchenko National University of Kyiv L. V. Gubersky]. (In Ukrainian).
- Taras Shevchenko National University of Kyiv. (2017). Zvit rektora Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka Guberskogo L. V. [Report of the Rector of the Taras Shevchenko National University of Kyiv L. V. Gubersky]. (In Ukrainian).
- Taras Shevchenko National University of Kyiv. (2018). Zvit rektora Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka Guberskogo L. V. [Report of the Rector of the Taras Shevchenko National University of Kyiv L. V. Gubersky]. (In Ukrainian).
- Taras Shevchenko National University of Kyiv. (2019). Zvit rektora Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka Guberskogo L. V. [Report of the Rector of the Taras Shevchenko National University of Kyiv L. V. Gubersky]. (In Ukrainian).
- Treve, M. (2021). What COVID-19 has introduced into education: challenges Facing Higher Education Institutions (HEIs).
- Woods, M. (2008). The Theory, History and Practice of Resource allocation Models in UK Universities. The Journal of Finance and Management in Colleges and Universities, 5, 139-155.
- Yang, L., Brotherhood, T., & Chankseliani, M. (2021). A crisis of opportunity at English universities: Rethinking higher education through the common good idea. Educational Review, 1-18.
-
The level of digital transformation affecting the competitiveness of banks
Oleh Kolodiziev ,
Mykhailo Krupka ,
Nataliya Shulga ,
Myroslav Kulchytskyy ,
Olha Lozynska
doi: http://dx.doi.org/10.21511/bbs.16(1).2021.08
Banks and Bank Systems Volume 16, 2021 Issue #1 pp. 81-91 Views: 1783 Downloads: 647 TO CITE АНОТАЦІЯThe article examines the competitiveness of Ukrainian banks influenced by economy digitalization, the dynamic spread of electronic payments and e-commerce, as well as innovative technologies aimed at providing digital services. When shifting to an Online Platform business model, a bank can expand its range of banking products, attract more customers, thereby forming a competition policy and gaining competitive advantages. The paper aims to assess the digitalization level affecting the general competitiveness of banks and its components based on Ukrainian banks. For this purpose, the following methods were used: standardized input statistical indicators, comparison and ranking, a cluster analysis, and a regression and correlation analysis. The cluster analysis confirmed the current role of digitalization as a competition driver that determines the competitive advantages of banks and creates additional opportunities to expand the customer base and the range of services. The correlation and regression dependence of the competitive position identified by the activity indicators of certain banks on the level of competitive digitalization confirmed a close direct impact on the competitive position of personal deposits arising from the development of digital banking technology; the pre-tax income, profiles of assets and personal loans, and corporate deposits are subject to a significant direct impact, while the weakest direct impact determines corporate loans. The foregoing substantiates the feasibility of large-scale introduction of innovative digital technologies by banks to maintain competitive positions in the banking sector of the economy. Applying the proposed approach based on certain regression equations, managers of Ukrainian banks will be able to assess the efficiency and make appropriate decisions concerning investing in digital tools and services.
-
The place and perspectives of Ukraine in international integration space
Vitalina Babenko ,
Maryna Pasmor ,
Juliia Pankova ,
Mykhailo Sidorov
doi: http://dx.doi.org/10.21511/ppm.15(1).2017.08
Problems and Perspectives in Management Volume 15, 2017 Issue #1 pp. 80-92 Views: 1536 Downloads: 246 TO CITE АНОТАЦІЯThe resulting indexes for integration processes state development analysis were formed. The integral indexes illustrating integration state were calculated on the basis of member countries of BRICS and Ukraine. It provided the possibility to evaluate socioeconomic state of the countries from the point of view of international integration and create integration processes development scenarios. The strategic directions of integration processes development for Ukraine and member countries of BRICS were formed.
-
Forecasting the level of financial security of the country (on the example of Ukraine)
Józef Antoni Haber ,
Alina Bukhtiarova ,
Svitlana Chorna ,
Olesia Iastremska ,
Tetiana Bolgar
doi: http://dx.doi.org/10.21511/imfi.15(3).2018.25
Investment Management and Financial Innovations Volume 15, 2018 Issue #3 pp. 304-317 Views: 1316 Downloads: 316 TO CITE АНОТАЦІЯIn the conditions of functioning of economic relations, which arise between subjects of the financial system of Ukraine, the question of creating safe conditions for their activity is increasingly being raised. Attention is paid to the investigation of the state of financial security of the country as a component of economic security, in terms of its key elements, which allows attention to the most important indicators and to develop measures to prevent existing threats.
The purpose of the paper is to forecast the level of financial security of the country based on regression analysis of impacts factors. The object of the study is the financial system as a mechanism, which is aimed at the activities of financial security subjects of the country to ensure its proper level. As a result of the regression analysis, it was found that changing in the country’s banking security by 1% will decrease the overall financial security index by 0.04 points, while the non-banking market will grow by 0.07 and the monetary component will decrease by 0.51.
Based on the calculation of the arithmetic mean of absolute deviations of independent variables, the estimated value of Ukraine’s financial security level is calculated, which is 40.09% in 2018.
Proposals for improving the “Methodological Recommendations for Calculating the Level of Economic Security of Ukraine” will help to solve the problem of mathematical substantiation of the choice of indicators for assessing financial security, minimize risks, eliminate subjectivity and improve the efficiency and the quality of the country’s financial security assessment methodology.
The article deals with the issues of the financial component of economic security as the main element of ensuring sustainable financial development of the country.
