Mergers and acquisitions and educational quality of higher education institutions

• Published in: Tertiary education and management Vol. 30; no. 1; pp. 17 - 44
• Main Authors: da Silva, Jaison Caetano, dos Reis, Edson Andrade, Marcon, Rosilene, Lana, Jeferson, Gambirage, Cinara
• Format: Journal Article
• Language: English
• Published: Dordrecht Springer Netherlands 01-03-2024
• Subjects: Administration; Education; International and Comparative Education; Management; Organization and Leadership; Original Paper; Political Science; Educational quality; Higher Education Institutions; Mergers and acquisitions; Institutional incentives
• ISSN: 1358-3883; 1573-1936
• DOI: 10.1007/s11233-023-09132-z

As interest increases in the educational quality of higher education institutions (HEIs), less is known about how the mergers and acquisitions (M&As) of these HEIs affect educational quality. In this study, we investigate the association of M&As on the educational quality of HEIs and the role of institutional incentives in this relation. We argue that M&As in HEIs can positively affect the educational quality of these institutions, although this relationship is substantially sensitive and moderated by institutional incentives. Ultimately, M&As can negatively influence educational quality if the incentives do not encourage HEIs to improve and maintain high standards in educational quality continuously. We empirically examine our theoretical framework using a longitudinal dataset on a fixed-effects model from 2007 to 2015 with M&As of Brazilian HEIs, and the results consistently support our arguments.