Performance funding policies are politically popular, however research on performance funding has shown that these policies are ineffective and can have unintended negative consequences, particularly for lower-resourced institutions and underserved students. The purpose of this study was to determine if the Montana University System performance funding policy was effective at increasing the production of undergraduate credentials and to determine how the policy's impact may have varied across different degree types. This study also examined if the inclusion of equity incentives in the policy influenced the degree production of Native American and post-traditional undergraduate students. This study used a comparative interrupted time series regression to compare degrees conferred data from Montana institutions subject to a performance funding policy to a group of regionally and demographically similar institutions not subject to the policy. Results indicated that the Montana University System performance funding policy was not effective at increasing any type of undergraduate credentials, and that though the equity incentives may have had a positive, practically significant impact on credential production for Native American students and post-traditional students immediately after policy implementation, the effect was not sustained long-term. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]