Abstract
AbstractIn many countries, funding for higher education institutions is insufficient and requires the search for new financial instruments and financing models. One such financing model could be the issuance of social impact bonds aimed at improving the efficiency of higher education institutions. The study focuses on the use of financial instruments as social bonds for additional funding of higher education institutions. The peculiarities of social bonds and the possibilities of their application in the field of higher education are explored in the paper. The results of the study comprise three proposed innovative approaches to the development of a mechanism for the issuance of bonds. The first approach assumes that the issuer of social bonds in favour of the university is a bank or other financial institution. The second approach is based on the methodology of issuing social bonds by a university with the participation of the state. The third approach to the use of social bonds is the creation of a platform for financing long-term educational programs; it can be done with the participation of a large company implementing large-scale socio-economic projects. Such platform will have a great social and economic effect.
Highlights
As is known, higher education includes a set of systematized knowledge and practical skills, which allow to solve theoretical and practical problems on a professional profile, using and creatively developing modern achievements of science, technology and culture
In order to attract additional sources to finance higher education institutions, at least three approaches can be used, which are based on the social impact bonds issue and the interaction of universities, governments, banks, private large companies and investors (Bloomgarden et al, 2014)
As a result of the study, it was concluded that social impact bonds can be used to funding of higher education institutions
Summary
Higher education includes a set of systematized knowledge and practical skills, which allow to solve theoretical and practical problems on a professional profile, using and creatively developing modern achievements of science, technology and culture. 14 Possibilities of Social Bonds Using to Finance Higher Education Institutions coherent interaction Interest in this instrument is growing rapidly, owing to its potential to attract long-term investment in the development of a resource base for social projects (Choudhary & Jain, 2017). It should be noted that social bonds as financial instruments have their disadvantages and advantages Proponents of this financing tool emphasize the possibility of using them for socially oriented, and for innovative projects in the early stages of development through attracting private funds and private investors, encouraged by the state through the provision of tax benefits until positive results are obtained for the project (Burand, 2013). SIB is a debt liability (security) that contains a loan agreement based on mutually beneficial conditions of interaction between several organizations of different profiles of activity but striving to achieve a certain socially significant result
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