Financing Structure And Running Efficiency Of High Vocational College

As the vital composition of the high education, the high vocational college bears the work of cultivating the high-technical workers involving front line of production, construction, service and management. In China the adjustment of economic structure, orienting to the new-type industrialization, forming the socialist new rural and realizing the sustainable development address the higher requirement for the high vocational education and its running efficiency. How to improve the running efficiency and survive in the future high educational market in order to develop is an urgent issue facing the gradual drastic competition. In high vocational college especially state-owned high vocational college, the issues related to financing structure, property rights structure and governance structure influence the improvement of running efficiency.The nature of running efficiency of high vocational college involves with the relation between inputs and outputs. More rationally locating the resource of high vocational education and improving the quality and efficiency of high vocational college's run. The running process of high vocational college is considered as the system of multiply input and output. Generally speaking, enhancing the personal, material and fund input, improving the educational condition, consummating the management system, increasing the educational quality can improve the running efficiency of the college. How we analyze the efficiency of input and output, the factor influencing the efficiency then increase educating quality and efficiency is an issue that is worth-wealthy studied. Studying the financing structure and running efficiency of high vocational college has the important practical implication on optimizing the location of high vocational education resource and improving the running efficiency.From literature perspective the paper summarizes the research of the data envelopment analysis on the running efficiency of high school and the educational finance of high vocational college at fist. Currently, the existing researches mostly focus on the research-oriented universities with the basic data envelopment analysis and lack of the study on the high vocational colleges. To the research of high college's finance the macro-level research is adequate but the empirical study on the input-output efficiency of high vocational education from micro-level is less. Because of the lack of the existing research on the research object and research method, The paper selects the financing structure and running efficiency of high vocational colleges in Shandong province as research object and studies the efficiency of high vocational colleges in Shandong province by using the cross-evaluation data envelopment analysis.Then the paper briefly states the issues occurring in the development process of high vocational education in Shandong Province. The keystone is the issue of the financing structure of high vocational college, such as singularity of financing structure, the ratio of finance fund and tuition fee to the total fund is on the high side but doesn't cover the need of high vocational college, the high debt from the bank loan leads to the finance risk in the high vocational college and so on. To the many issues, the paper can't analyze them by using the mathematical method one by one. So the paper choose the ratio of finance fund to the total fund in the financing structure of high vocational college as the start point, because the public finance is the main way of the finance of state-owned high vocational college, and it can be considered as the public property-rights participating the governance of college, thus the emphasis is econometrically analyzing that the ratio of finance fund (the ratio of public property-rights) influencing the direction and extent of college's efficiency. From the aspect of technical tool, the paper focuses on the cross-evaluation data envelopment analysis with avoiding the flaw of the basic data envelopment analysis then gets the more objective efficiency. According the attainability of data, the paper chooses the 60 high vocational colleges in Shandong Province which is 94 percent in the total high vocational colleges in Shandong Province. The input index includes the number of teachers and staff, undertaking outlay and fixed capital which can reflect the input of person, money and materials. The output index includes the number of students at school and the employment rate of graduated students which can reflect the orientation of the high vocational college. The results of analysis and calculation are that the efficiency values and their variations between the state-owned and private vocational college is basically equal from the self-evaluation; the efficiency value and its variation of state-owned high vocational college are larger than that of private ones which express that the difference among the private high vocational college is smaller than the state-owned ones, the paper gives the analyses for the result.Then the paper estaolishes the econometric model and considers the efficiency values of high vocational colleges in Shandong province which are calculated before as the data of dependant variables, simultaneously introduces the ratio between public finance input and total income of high vocational colleges, the ratio between the personal outlay and undertaking outlay as independent variables in the regression process. The results state that to state-owned high vocational colleges, the self-valuation value and cross-valuation values and the ratio of public finance in the total income express the negative relation, and one percent change of the ratio will produce one-third percent negative change of the efficiency value, but the relations between the two efficiency values and the ratio of the personal outlay in the total undertaking outlay are not significant. To private high vocational colleges, the self-valuation value and cross-valuation values and the ratio of public finance in the total income express the negative relation, and one percent change of the ratio will produce one-fortieth percent negative change of the efficiency values. And the two efficiency values and the ratio of the personal outlay in the total undertaking outlay express positive relationship, than one percent change of the ratio will produce one-forth percent positive change of the efficiency values. We have got the two conclusions here:one is that the two efficiency values of both state-owned and private high vocational colleges and their ratios of public finance fund in total income express negative relationship. For this result, we can explain that since the ratio can be considered as index of the public property-rights joining in the governance process, in the principal-agent relation, the increase of the ratio will reduce the running efficiency because the lack of effective inducement and constraint and the ambiguity of principle part. Another conclusion is that the ratio of personal outlay in the undertaking outlay does not influence the running efficiency of state-owned high vocational colleges, but does that of private high vocational colleges. We can explain that the personal system in the state-owned ones is more rigid. The relation between the wage and the number of student at school, employment rate in the state-owned high vocational colleges is loose, but the relation in the private ones is tight. In addition, a part of personal outlay in state-owned high vocational colleges is the wage and insurance expenses for retired people which do not directly affect the running efficiency. In the private high vocational colleges there are not these expenses so its elasticity is more than state-owned ones.In the part of theoretical analysis, the paper states the theoretical basis of the multiple financing ways of high vocational colleges from public goods and human capital theories. From the public goods theory, one aspect, the people consume the service of high vocational education which it has competitiveness and exclusiveness——one consumes the high vocational education which reduces the opportunity of the others consume it; Another aspect, the high vocational education has strong externality which the society can benefit from the increasing personality of educated people. So the high vocational education includes quasi-public goods. From human capital theory, at individual level the technical ability of labor force and his income can increase through investing high vocational education, at national level, the technical ability of total nations and national wealth will increase.In the theoretical part the paper further analyzes the relation among the property-rights structure, governance structure and organizational performance. The separation between ownership and management right will produces the principle-agent issue. The governance structure depends on the property-rights structure and the benefit pursuit of owner determines the goal of governance. The organizational performance depends on the governance structure which can provide the inducement and constraint mechanism involving the performance. The paper analyzes the necessity of the reform of state-owned high vocational colleges for property-rights perspective.Finally the paper states the treatment of the development and multiple financing ways of high vocational colleges. Based on the micro-analysis, the macro-control of government on development of high vocational colleges as the first treatment, the development of high vocational colleges will match the need of economy and society coordinating with the elementary and middling education. And the separating development strategy should be changed. In the treatment of the multiple financing ways, because the quasi-public goods character of high vocational education, ensuring the necessary public finance input and more importantly leading the firms to invest in the high vocational colleges and combining them should be done. To the current loan arising from the development, the paper analyzes that the loan theory of high school is not rational because of non-profitability of high school and addressed that the loan size must be controlled.One important treatment in the paper is forming the corporate governance structure of high vocational colleges and introducing joint-stock institution to the running mechanism. From the theoretical logic, the conclusion is the point of the reform of the state-owned high vocational college is the adjustment of the property-rights structure. Clarifying the relation between government and high vocational college makes the high vocational college as the corporate institution which states the separation between government and college and the clear rights and reliability and improving the inner governance structure and largely realizing the inducement compatibility between the principle and agent. Trying out implementing the joint-stock institution in the college, realizing the president reliability under the board, inducing the private capital into the college through different ways, combining the non-profitability of high vocational education and profitability of capital should be done. In one word, the reform goal of high vocational college should further improve property-rights structure and form a perfect corporate governance structure and the constraint and incentive mechanism from multiple levels and dimensions will be established inside and outside. And push it to increase its efficiency and form a well-functioning and competing high vocational education market.