Abstract—This study adopted FRA to examine the impacts of merger on financial performance of two post-merger top universities in Taiwan from 2012 to 2021. This study shows that Taiwan’s top universities are not outstanding in terms of financial management capabilities, including the ability to control costs well, utilize assets efficiently, and maintain good financial stability. Moreover, the merger of top universities may not improve the financial management capabilities of the post-merger university, and may even worsen its financial stability. Ignoring the financial management capabilities of universities, the policy of concentrating resources on developing top universities and even encouraging the merger of top universities to quickly enhance their competitiveness may not bring the expected results, but may lead to the deterioration of the financial soundness of universities and even the country. In view of this, this paper calls on higher education policy makers and university managers to pay more attention to the financial management capabilities and financial performance of universities, especially cost control, resource utilization efficiency, and financial stability, while pursuing innovative development and high competitiveness. Only in this way can it be possible to ensure the competitiveness improvement and the long-term sustainable development of the top universities and the country. 
 

Keywords—top university, merger, financial performance, Financial Ration Analysis (FRA) 

Cite: Chiou Rung Chen, "Financial Performance Evaluation of Top Universities Following the Mergers," International Journal of Learning and Teaching, Vol. 10, No. 1, pp. 178-193, 2024.

Copyright © 2024 by the authors. This is an open access article distributed under the Creative Commons Attribution License (CC BY-NC-ND 4.0), which permits use, distribution and reproduction in any medium, provided that the article is properly cited, the use is non-commercial and no modifications or adaptations are made.