摘要：We investigated the effect of debt financing options on the financial sustainability of universities in Kenya from 2015 to 2020. The data was obtained from 55 universities in Kenya registered by the Commission for University Education, as at December 31, 2020. We applied a random effects regression analysis in this study and the findings revealed that long-term debt has a positive, statistically significant impact on the financial sustainability of Kenyan universities. Thus, an increase in financial resources enhances financial sustainability. The findings further revealed that short-term debt and trade credit had no effect on financial sustainability. The study advises university management to employ optimal long debt levels because financing cost can affect an institution’s financial abilities. Additionally, university management need to develop additional revenue-generating strategies to support their operations. Our study expands the literature on debt financing and the survival of higher learning institutions. We propose that future studies be conducted in other fields, including health and security, to contrast the influence of debt financing options on financial sustainability.
关键词：financial sustainability;debt financing;trade-off theory;pecking order theory
