How university endowments respond to financial market shocks : evidence and implications

• Main Authors: Brown, Jeffrey R., Dimmock, Stephen G., Kang, Jun-Koo, Weisbenner, Scott J.
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2014
• Subjects: DRNTU::Business::Finance::Fixed income::Bonds
• Online Access: https://hdl.handle.net/10356/105787; http://hdl.handle.net/10220/20933
• Institution: Nanyang Technological University

Endowment payouts have become an increasingly important component of universities' revenues in recent decades. We study how universities respond to financial shocks to endowments and thus shed light on a number of existing models of endowment behavior. Endowments actively reduce payouts relativ...