Abstract
This chapter offers a necessary summary of the key concepts of the financial conditions in the higher education (HE) sector, through a close examination of different approaches. Focusing on a review of current literature, the chapter provides an overview of the transformation and main uses of performance information in the HE sector as the result of public policy changes. The chapter also defines some of the key theoretical and practical elements to describe the financial conditions and distress of public universities, while also clarifying the distinctive features of financial sustainability. The authors highlight in their closing remarks the implications for future research developments. These issues touch the core of the financial challenges in the HE sector and require thought and resolution to ensure the long-term success of public universities worldwide.
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