Do Private Universities Achieve Financial Sustainability as a Result of Transformational Leadership

Abstract

Against the backdrop of financial turbulence at the start of the COVID-19 pandemic, this study examines the role of transformational leadership in leading private universities in Indonesia to achieve good financial sustainability. This study is the latest study that combines the indirect relationship of transformational leadership and financial sustainability using the mediation of accountability and transparency as part of good university governance. The study used a closed survey of 381 respondents in the financial sector from private universities in 10 provinces in Indonesia. Data processing and analysis using SPSS with various stages for an analysis endurance test. The results show that transformational leadership does not directly affect financial sustainability but through transparency and accountability. Another accepted hypothesis discusses the relationship of transformational leadership to the transparency and accountability of higher education institutions. The last accepted hypothesis is the direct relationship of the transparency variable to the financial sustainability and the accountability variable to the financial sustainability of private universities in Indonesia. Theoretical and practical recommendations are discussed densely in the discussion of this research.