The Two Faces of Autonomy of Hungarian Foundation Universities

ABSTRACT This paper explores the evolution of autonomy in Hungarian model‐changing institutions, focusing on how reforms have altered governance dynamics. By examining both the university's distance from the state and the degree of self‐governance of the academic community, the study employs property rights theory to analyse how governance rights are distributed among the state, boards of foundations and university senates. The findings indicate that while autonomy in terms of distance from the state has increased, this shift primarily benefits the foundations by enhancing their freedom from state intervention. In contrast, the university's autonomy from foundations and its internal self‐governance have generally decreased. This research contributes to the literature by offering a dual‐focused analytical framework and providing insights into the unique governance challenges faced by government‐dependent private institutions in Hungary.