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Charity and finance in the university

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  • Beverungen, Armin
  • Hoedemaekers, Casper
  • Veldman, Jeroen

Abstract

In this paper we explore the financialisation of the university, and how it is possible that universities behave as if they were private corporations despite legally being corporations with a charitable status. We argue that this is largely attributable to financialisation, which creates tension with the university's charitable status. The paper commences with a brief history of incorporation, and examines developments in corporate governance. With the dominance of finance, and the treatment of institutions as mere nexus of contracts, distinctions between public and private become redundant. The paper continues with an account of the effects of financialisation on university governance, under which the university acts increasingly like a for-profit corporation, with its financial governance in direct contradiction to its charitable status. Here, the university emerges as a key site of neoliberalism, where financialised subjects are shaped. Finally, we examine to what extent the financialisation of the university may be halted through a reflection on its status as a charitable corporation.

Suggested Citation

  • Beverungen, Armin & Hoedemaekers, Casper & Veldman, Jeroen, 2014. "Charity and finance in the university," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(1), pages 58-66.
    • Handle: RePEc:eee:crpeac:v:25:y:2014:i:1:p:58-66
    DOI: 10.1016/j.cpa.2012.10.005
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    References listed on IDEAS

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    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
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    3. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    4. Parker, Lee, 2011. "University corporatisation: Driving redefinition," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 22(4), pages 434-450.
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    Cited by:

    1. Ulrike Schmidt & Thomas Günther, 2016. "Public sector accounting research in the higher education sector: a systematic literature review," Management Review Quarterly, Springer, vol. 66(4), pages 235-265, December.
    2. Morales, Jérémy & Sponem, Samuel, 2017. "You too can have a critical perspective! 25 years of Critical Perspectives on Accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 43(C), pages 149-166.
    3. Smyth, Stewart & Cole, Ian & Fields, Desiree, 2020. "From gatekeepers to gateway constructors: Credit rating agencies and the financialisation of housing associations," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 71(C).
    4. Shen, Jie, 2022. "Universities as financing vehicles of (sub)urbanisation: the development of university towns in Shanghai," Land Use Policy, Elsevier, vol. 112(C).
    5. Christian Heise & Joshua M. Pearce, 2020. "From Open Access to Open Science: The Path From Scientific Reality to Open Scientific Communication," SAGE Open, , vol. 10(2), pages 21582440209, May.
    6. Gilbert, Christine, 2021. "Debt, accounting, and the transformation of individuals into financially responsible neoliberal subjects," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 77(C).

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