Study On The Universities' Liabilities From The View Of Government Regulation

At present, China's economy has been in the transition period. There are new problems in the development of national economy, including in the area of higher education. The shortage of funds has become an important problem in the development of higher education, especially since universities expended in 1999.Managing with loan has become a common phenomenon in the area of higher education. When some universities develop fast, financial crisis appears. If universities lack of funds in the time of repaying loan, they will operate abnormally and the sustainable development of the higher education will be threatened. All aspects of the society will widely blame for it.Therefore, scholars pay great attention to solutions of universities'liabilities. The studies on it increase annually. These studies analyze the problem of universities'liabilities, using different methods from various aspects. But there are few studies from the view of government regulation. This paper considers that as the owner of colleges and universities, government is responsible for regulating universities'financing, financial accounting and so on. As a result, it is necessary to analyze universities'liabilities from the view of government regulation. Based on the study of relevant theories, firstly this paper studies reasons that governments must regulate the problem of universities'liabilities. We build a totally dynamic game information model about universities, banks and governments. Governments are always in disadvantaged status through analysis. If governments don't adopt regulation, they will take the consequences of universities'liabilities. Then the paper discusses the change of regulations on universities'liabilities, and analyzes the problems in the process of change (such as unfair education, too high regulation cost, etc.). Finally the paper build IC and IR model to provide technical support for governments regulation. Structure long-effect mechanism of regulation on universities'liabilities, so as to encourage universities to moderate loan and promote higher education sustainable development.