A Study On Corporate Governance Of Chinese Private Higher Education Institutes

In the past 3 decades, with rapid development and great achievement, the private higher education has become a very important part of Chinese higher education system, whereas, owing to the drawbacks of the system and the lack of regulations, there still exist a lot of problems and contradictions in its macro management and micro practices as well, so it is currently confronted with many difficulties and challenges. By probing all kinds of internal and external factors which hindered the development of the private higher education, we can determine that the defective micro management and unsound corporate governance system are the main triggers. Both the concerned theories and practices have demonstrated that in order to fundamentally promote the fast and sound development of the private higher education, it is critical to establish and perfect the corporate governance system of private higher education institutions (PHEI) and to improve the environment of external governance of private higher education with inclusion of macro management.This dissertation, based on multi-preliminary knowledge and by means of combining normative approach and empirical study at both the micro and macro levels, focuses on the research of the problem of corporate governance system in PHEI. It firstly makes an overall and comprehensive summary and evaluation of the relevant researches at home and abroad and then introduces the core conception of corporate governance. On the basis of the description of the origin of the system of corporation, the connotation and characteristics and the different classifications of corporation, and by means of comparative study, the dissertation present an analysis of the classification of the Chinese higher education providers and its weak point. Some theories related to the corporate governance are systematically summarized and the similarities and differences between the corporate governance and no-profitable corporate governance are also analyzed. Four sets of theories on which two types of corporate governance are based are specifically interpreted, i.e. the theory of separation of ownership and management, the theory of trusting and agency, the stakeholder theory and accountability theory.Based on the interpretation of the contributes of corporation and the governing theories, the dissertation makes the abstraction of the basic problems concerning corporate governance in PHEI and it asserts that the corporate governance should be implemented in PHEI because of the two preconditions of " the coexistence of the incompletion of contract" and "the asymmetry of information". Meanwhile, PHEI have some characteristics of both "corporation" and "unprofitable corporation", therefore, the theories related to these two types of corporations can and should be applied in this regards. Since the Implementing of the corporate governance in PHEI is based on the laws and regulations, and the corporate governance in PHEI have the attributes of public welfare, and attributes of being industry, academic and administrative, the key of the corporate governance lies in the establishment of a financial system of the institute corporation, the strengthening of the internal structure and the improving of the external environment of governance.Empirical study on the present situation of corporate governance in PHEI in China is also conducted and four stages of PHEI development and their governances in each stage are described. Ten types of establishment of PHEI and five cases of bad governances are included. Based on the questionnaires, an analysis is given about the implement of property right in PHEI and the situation of internal corporate governance. Meantime, some samples from UK, US, Japan and Taiwan is collected and by comparing the mechanisms of corporate governance in PHEI of all these countries and regions, some practices and experiences are provided as references for China's undertaking of the corporate governance in PHEI in Mainland.The core of this dissertation is on the building of the corporate governance in PHEI with Chinese characteristic, which is based on some relative theories and foreign experience but in the light of Chinese national conditions. It points out that six principles should be adhered to build corporate governance in PHEI of China, such as the principle of taking into account of special contributes of institute corporation and the principle of integrating marketability and public welfare. The outline of corporate governance in PHEI should consist of four parts, i.e. an independent and complete systemof property right, an democratic and scientific decision-making system, a professional and high-efficient implement system and a sensitive and effective supervision system. Focusing on the building of these four systems, the dissertation makes some arrangement and policy designs at different levels, and puts forward some counter-measures and suggestions for each individual system structure.Finally, in order to advance effectively the implementation of corporate governance in PHEI, a series of ensuring measures are put forward concerning the aspects of the government, the society and the institutes. For government, its key role is to provide system support and to strengthen the establishment of the law for the private education, to improve the public policy for private education and to deepen the reform of management system of education. For the society, the key role is to create corresponding surroundings, especially to improve the production factor market and to perfect the intermediary organizations in education and to better the public opinion circumstances. For private higher education institutes, it is vitally important to enhance their inner dynamics, with more emphasis on the developing of their organizational mission, the fixing of their governance goals, the improving of the corporation constitution and the standardizing of the governance behaviors.