Differences in financial performance between research universities and teaching universities in Chile

Abstract

The primary purpose of this study is to assess and compare the financial performance between research universities and teaching universities in Chile. Indicators are formulated using the annual audited financial statements that Chilean universities report to regulatory bodies such as the Higher Education Information System and the Superintendence of Higher Education. The study is applied to a sample of 53 institutions for the period between 2014 and 2021. The T-Student statistical test and the non-parametric Mann-Whitney U test are applied. The results show that there are no significant differences in profitability indicators or margins. However, there are significant differences in all other financial ratios examined. It is concluded that research universities have a more robust financial performance than teaching universities.