Abstract
A long-standing concern of many colleges and universities are low persistence and graduation rates. This study examined how institutions can affect, and potentially improve, persistence and graduation rates by targeting their expenditures toward those activities that have an affect on persistence and graduation. Framed by Tinto's theory of academic departure, the inquiry investigated the relationship between expenditures for instruction and academic support on persistence and graduation rates at 218 universities. The results confirmed Tinto's theory and were able to explain approximately half the variance in persistence and graduation rates among the institutions included in the study. Recommendations for practice are suggested, including using the results of the study to develop resource allocation strategies to enhance persistence and graduation rates.
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