Value at risk for higher education institution : the case of NDU

Abstract

Purpose–The purpose of this thesis is to develop a conceptual model that connects factors affecting students’ enrollment in Higher Education Institutions and evaluates the extent to which these factors are influencing institutions’ Value at Risk (VaR). Design/methodology/approach–Structural PCA modeling was employed in this study to examine the association of institutions’ admissions and different influence parameters, and to derive corresponding VaR as a measure of financial risks. Questionnaires were also completed by Grade Ten students of eight different high schools, prior and post orientation sessions, to prove the factors of influence on their selection process. Findings–This study provides empirical evidence about the most important factor affecting the VaR of higher education institutions which is the direct contact with high school students. The research reveals that institutions’ perception and sustainability is significantly related to the efficiency of the orientation sessions. Research limitations/implications–The findings may guide key decision makers in higher education institutions to understand the importance of the admissions office and all the activities performed by this office with high highly competitive education market directly affects the organization’s financial risk. Originality/value–Past researchers have not considered the dynamic financial risks measures, specifically Value at Risk for Higher Education Institutions, and hence research is to be called for in this area. This thesis was able to examine orientation’s impact from the perspective of students and provide institutions with ability to measure their financial exposure as a result of enrollment variation.