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George Mehaffy on 23 Dec 10"If and When Money Matters: The Relationships among Educational Expenditures, Student Engagement, and Students' Learning Outcomes Issue/Topic: Finance--Does Money Matter?; Postsecondary Finance--Efficiency/Performance-Based Funding Author(s): Pike, Gary; Kuh, George; Smart, John; Ethington, Corinna; McCormick, Alexander Organization(s): University of Memphis; Indiana University Purdue University at Indianapolis; University of Indiana Publication: Research in Higher Education Published On: 9/18/2010 Background: Past research on expenditures and college outcomes has been characterized by weak and contradictory findings. Surprising little is known about whether and how "money matters" to desired outcomes of college. It seems reasonable to expect that combined expenditures for instruction, academic support, student services, and institution support would be positively and directly related to student engagement, but indirectly related to student learning. Purpose: To examine the relationships among educational expenditures, student engagement and learning outcomes for first-year students and seniors. Findings/Results: * Expenditures were significantly and positively related to...first-year students' self-reported cognitive outcomes (in areas such as general education, writing and speaking effectively, quantitative analysis, and critical thinking). * Expenditures were not significantly related to first-year students' non-cognitive development (as measured by responses to questions concerning self-understanding, working with others, developing ethical standards, and civic/community engagement). * For a wider range of learning objectives (e.g., academic challenge, collaborative learning, educational enrichment), the relationship between expenditures and outcomes was indirect and mediated by student engagement variables. * Between-institution differences were very small compared to the differences among students within institutions. * All of the enga