Research On Principal-agent Mechanism In The Chinese Academic Degree Authorization System

Degree is academic title, which is the symbol that educated level which Grantor has gotten and academic level have reached standard rate. In Chinese degree system, it contains three levels:bachelor, master and PhD. Bachelor degree is decorated by colleges and universities, which are authorized by State Council of China. And master degree and PhD are decorated by colleges, universities and scientific research organization, which are also authorized by State Council of China. The examination and verify of Diploma of master degree and PhD awarded is one of the most important section in academic degree system of our country. It is an institution to examine and verify the organizations which recruit post graduated students and award them diplomas, and then authorize the organizations. Chinese academic degree authorization and verification system involved main parts of degree management such as Degree Council of the State Council, Degree Council of provincial government and colleges and universities, as well as several academic organizations such as Degree Verification Council of the State Council et al.Chinese academic degree awarding powers belong to all people, whose concrete form is government property. The implementation of the power is completed by people’s government, who stand for all people in our country. In this sense, all the people become principals, and then governments’ status is agent. While the degree awarded is implemented by local academic degrees committees, colleges and universities and other education organizations indirectly, governments do not award degree directly. To this perspective, governments’ status transforms to principal, and colleges and universities become agent. However, governors of colleges and universities do not complete the direct jobs such as enrollment, education, research and evaluation, the selected professional teaches are in charge of these jobs. Here governors of colleges and universities are principal and teachers are agent. As a whole, teachers and intermediate agents are a part of people, who are ultimate owner. This results a multiplex and circular principal-agent chain, whose characteristic is multiplex and circular Principal-agent.Principal-agent theory and empirical research comparison are presented in this paper. Several jobs are completed as following:Ⅰ.The existence problem of multiplex and circular principal-agent relations in Chinese degree system is considered and presented. Ⅱ.The suggestion of guarantee the right autonomy of colleges and universities are given.Ⅲ.The advice to strengthen agent organizations are researched and presentedⅣ.The periodic evaluation institution for degree authorization is analyzed.Chinese academic degree authorization system is a complex system and a part of education management system of colleges and universities. So academic degree authorization system concerns universities’ governance structure and academic freedom. It will affect Chinese strategy. Several suggestions and directions of future research are presented.