SYSTEMATIC LITERATURE REVIEW ON FACTORS AFFECTING THE FINANCIAL STABILITY OF HIGHER EDUCATION INSTITUTIONS: THE CASE OF PRIVATE UNIVERSITIES

Abstract

The rapid expansion of private higher education institutions (PHEIs) across emerging and developing economies has intensified concerns regarding their long-term financial stability. Unlike public universities that often receive substantial state support, private universities largely depend on tuition fees and market-based revenue structures, making them vulnerable to demographic shifts, economic crises, regulatory uncertainty, and competitive pressures. This study conducts a systematic literature review (SLR) of factors affecting the financial stability of higher education institutions, with a particular focus on private universities. Using the PRISMA methodology, peer-reviewed studies indexed in Scopus, Web of Science, ScienceDirect, and related academic databases between 2005 and 2025 were analyzed. The review synthesizes major determinants influencing institutional financial sustainability, including revenue diversification, enrollment dependency, governance quality, digital transformation, regulatory frameworks, endowment development, strategic management, academic quality, internationalization, and risk management practices. The findings reveal that financial stability in private universities is multidimensional and strongly associated with institutional adaptability, strategic diversification, and governance effectiveness. The review also identifies substantial research gaps in emerging economies, especially regarding financial resilience modeling, liquidity risk management, and long-term capital sustainability mechanisms. A conceptual framework integrating internal and external determinants of financial stability is proposed. The study contributes to higher education finance literature by consolidating fragmented evidence into a comprehensive analytical structure suitable for policymakers, university managers, and researchers.