Analysis of the For-Profit Universities in Japan
-From the Perspective of Financial Analysis-
The for-profit universities in Japan are classified into three types: public company, subsidiary of public company and private company.
The first type includes Business Breakthrough University and Japan Professional School of Education. Their management stability is relatively higher than others. Especially, the former has thicker capital cushion.
The second type composes of LCA University and Cyber University, and depends on their parent companies in terms of stability and continuity. University management may be easily influenced by business conditions of the parent company.
The third type includes LEC Graduate School of Accountancy and Globis University Graduate School of Management. They do not seek stability and continuity about university management because of their weak financial conditions. Without serious obstacles, for-profit universities are easy to entry into the higher education market, but the accumulation of internal reserves is difficult in a system design for the payment of a dividend to stockholders and the tax.
Finally, it is concluded that for-profit universities are not necessarily superior to incorporated educational institution in terms of stability and continuity of university management at this stage.