Research On Financing Way Of Private College In China

The emergence of Private College is the product of market economy, which has increased investment in education and expanded the supply of education on the one hand, broken the old pattern of running the Government taking to promote the reform of our school system and promoted the reform of education system in our country on the other hand. The Private College in China so far from the eighties of last century has been developing rapidly, showing a momentum of robust growth, and has contributed greatly to the process of popularization of higher education, become an important part of higher education system. A stable financial resource is an essential guarantee on the continual development of education. Compared with public Colleges, Private Colleges are faced with a series of special issues, including financing issues which has become a bottleneck restricting the development of Private Colleges factors.This paper bases on public goods theory, human capital theory, higher cost-sharing theory, the theory of corporate finance structure, and describes current situation and existing problems of the way of financing Private College. This paper learns from the successful experience of foreign private universities, and analysis the cause of problems on Financing way of Private College in China. Finally, Suggestions on improving the current financing condition of Private College are drawn up. Under the current diversified financing channels, in order to increase the efficiency of financing, direct the Private Colleges solving the financing difficulties and promote the healthful and continual development of the Private Colleges, this Paper proposes a sensible way of financing private universities select system from the corporate finance theory and the use of funds.