ABSTRACT
JOHN C EVERETT. Preventing institutional failure: a review of operational and financial variables at theological graduate schools. (Under the direction of DR. ALAN MABE)
Theological graduate schools have faced many challenges over the past twenty years, but many have thrived and survived through the efforts of great leaders, strong faculty and staff, dedicated supporters, and supportive organizations. There have been a number of closures, mergers, and accreditation withdrawals with struggling theological graduate schools due to various reasons including enrollment reduction issues, financial exigency, rising tuition, endowment concerns, and the changing landscape of the church just to note a few. Studying the financial strengths and weaknesses at theological graduate schools provides an opportunity to address the relationship of financial and operational variables at these schools.
This quantitative study determined if there is a relationship between financial and non-financial variables and the financial stability and instability at 161 theological graduate schools in the United States. The study utilized financial and non-financial data from two time periods, 2011 and 2021 with the following variables: financial responsibility composite score (FRCS), independent theological schools, university-embedded theological schools, denomination, region, minority serving, enrollment, tuition, expenditures, endowment, library volumes, and faculty FTE.
The study included correlation analysis, trend analysis, and multiple regression analysis. The multiple regression analysis included nine models reviewing the relationship of independent and dependent variables. Independent theological schools had a statistically significant p-value for the financial responsibility composite score with negative differences in these scores compared to the university-embedded theological graduate schools. Roman Catholic theological schools had a statistically significant p-value and yield a difference of .5156 for the financial responsibility composite scores in 2011. In 2021, endowment levels and expenditure levels had statistically significant p-values and yielded differences of -.0012 and -.0002 respectively for the financial responsibility composite scores. Enrollment levels and Midwestern schools had strong p-values, but the results were not statistically significant for financial responsibility composite scores.