Mergers and acquisitions and educational quality of higher education institutions

As interest increases in the educational quality of higher education institutions (HEIs), less is known about how the mergers and acquisitions (M&As) of these HEIs affect educational quality. In this study, we investigate the association of M&As on the educational quality of HEIs and the role of institutional incentives in this relation. We argue that M&As in HEIs can positively affect the educational quality of these institutions, although this relationship is substantially sensitive and moderated by institutional incentives. Ultimately, M&As can negatively influence educational quality if the incentives do not encourage HEIs to improve and maintain high standards in educational quality continuously. We empirically examine our theoretical framework using a longitudinal dataset on a fixed-effects model from 2007 to 2015 with M&As of Brazilian HEIs, and the results consistently support our arguments.