Financial sustainability of a Ukrainian university due to the COVID-19 pandemic: A calculative approach

  • Received August 3, 2021;
    Accepted December 13, 2021;
    Published December 14, 2021
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/imfi.18(4).2021.28
  • Article Info
    Volume 18 2021, Issue #4, pp. 340-354
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    4 articles
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This work is licensed under a Creative Commons Attribution 4.0 International License

In 2020, due to the COVID-19 pandemic, university funding in Ukraine suffered significant losses due to unprecedented quarantine measures. The challenge for universities is to diversify funding sources, develop effective approaches to minimize existing and prevent future threats to ensure their financial stabilization (sustainability) in the post-pandemic period. The paper aims to consider financial sustainability of a university (the case of Taras Shevchenko National University of Kyiv) due to COVID-19 using the objective calculative approach on the statistical sample of data for 2011–2020. The tasks for achieving the aim are seen in determining, using regression methods, the number of lost receipts from general and special funds in the short and medium term, which will maintain a constant value of receipts at constant assets. The main idea of the paper is that financial sustainability is considered as a condition, and stabilization is considered as a process towards stability/sustainability.
The modeling approach reveals a fragile list of factors for the future preventing measures of the University to sustain. It is estimated that the University’s top management should consider financial strategy in dollar terms only. The challenge is that funding in hryvnia seems to be quite increasing and linear, but indeed, funding of the University is non-linear and has a quite intensive downward trend. Thus, for the financial sustainability strategy, this fact should be crucial.
The results indicate the need for a significant increase in university funding to mitigate the impact of macroeconomic instability due to various crises, including the COVID-19 pandemic.

Acknowledgment
The study is carried out under the grant funded from the National Research Fund of Ukraine within the competition Science for Human Security and Society, topic 2020.01/0265.

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    • Figure 1. Change in the amount of funding of the University under the general and special fund, UAH mln, 2011–2020
    • Figure 2. Change in the amount of funding of the University under the general and special fund, USD mln, 2011–2020
    • Figure 3. Dynamics (2011–2020) and short-term forecast (2021–2023) of the amount of the University’s funding under the general and special fund, USD mln
    • Figure 4. Dynamics (2011–2020) and medium-term forecast (2021–2025) of the amount of the University’s funding under the general and special fund, USD mln
    • Table 1. Average data on funding of the University
    • Table 2. Absolute and relative indicators for funding of the University, 2011–2020
    • Table 3. Estimated financing for the University during 2021–2025
    • Table 4. Linear regression modeling and Ramsey RESET test
    • Conceptualization
      Olena Kapustian, Yuliia Petlenko
    • Data curation
      Olena Kapustian, Yuliia Petlenko, Anton Ryzhov
    • Formal Analysis
      Olena Kapustian, Yuliia Petlenko, Anton Ryzhov, Ganna Kharlamova
    • Investigation
      Olena Kapustian, Yuliia Petlenko, Anton Ryzhov, Ganna Kharlamova
    • Methodology
      Olena Kapustian, Yuliia Petlenko, Anton Ryzhov
    • Supervision
      Olena Kapustian, Yuliia Petlenko, Ganna Kharlamova
    • Validation
      Olena Kapustian, Yuliia Petlenko
    • Visualization
      Olena Kapustian, Anton Ryzhov
    • Writing – original draft
      Olena Kapustian, Yuliia Petlenko, Anton Ryzhov
    • Writing – review & editing
      Olena Kapustian, Yuliia Petlenko, Ganna Kharlamova
    • Funding acquisition
      Yuliia Petlenko
    • Project administration
      Yuliia Petlenko
    • Resources
      Anton Ryzhov
    • Software
      Anton Ryzhov