'Governments base performance-based funding on global rankings indicators': A global trend in higher education finance or a global rankings literature fiction? A comparative analysis of four performance-based funding programs

For nearly two decades now, the rankings literature has continued to suggest that governments are adopting performance-based funding models which prioritize criteria favored by global rankings. This study examines this assertion by analyzing the performance-based funding programs of Austria, Denmark, Finland, and Sweden. The study finds that the orientation of performance-based funding on global rankings is weaker than it is commonly assumed. Except for Finland, the funding volume universities raise from this orientation is not substantial to influence the institutional performance. The study also analyzes the recent structural changes to performance-based funding in each jurisdiction. Policy implications are provided in the conclusion for higher education systems revising their performance-based funding or considering a shift to performance-based accountability.