Over the last few weeks, university politics has captured headlines as students across the country occupy sections of their campuses and demand that their schools divest from Israel in protest of the contentious war in Gaza. Chicago Booth’s Luigi Zingales and Harvard’s Oliver Hart, a Nobel laureate, have stressed that one lesson from these protests is that universities need to make transparent their investment strategies and how they contribute to the school’s financial operations, including financial aid.

Increased transparency can inform ethical debates about divestment, but can it solve them? Even if students get what they want, will it matter? Or should they be focusing their efforts elsewhere to maximize impact? Who gets to make the decisions about the ethics of college endowment investments, and how should votes be divided between different stakeholders—students, faculty, alumni, and donors? This week on Capitalisn’t, Zingales and his cohost, Bethany McLean, tackle these foundational questions that underlie the governance of today’s universities.

More from Chicago Booth Review

More from Chicago Booth

Your Privacy
We want to demonstrate our commitment to your privacy. Please review Chicago Booth's privacy notice, which provides information explaining how and why we collect particular information when you visit our website.