The Risk Study On Liabilities Development Of Domestic Ordinary Colleges

The fund shortage, which restricts the rapid development of ordinary colleges, becomes a serious problem coupled with the growing number of recruit students. It becomes a common phenomenon that the ordinary colleges get into debt during their development. For running into debt, however, it also takes high financial risk for colleges while strengthening education capability and relieving the financial deficiency for ordinary colleges. How to evaluate and avoid the debt risk becomes an important problem considered by current financial managers in ordinary colleges. All the analysis and research on the theory and methods for the risk of liabilities development in ordinary colleges in this article will provide a reference for the decision collecting capital.The basic condition, the way for collecting capital and the trend of development for higher education are discussed in this paper. At the same time, the reality, content, classification and characteristics for college's liabilities have also been summarized and analyzed. It emphasizes on analyzing several respects including main reasons for liabilities, necessity and feasibility of the liabilities development. The principle followed by the moderate liabilities development has also been put forward.In this article, based on the investigation and research, the conception and type of financial risk for colleges are raised and what causes the debt risk has also been analyzed. The way to transfer the debt risk to government is expounded and the debt risk will take bad impact for college and society has also been mentioned.Combining the fact of financial work, 11 items including asset-liability ratio are selected to set up a debt risk evaluation system. Utilizing the collected financial dataand taking 22 colleges' data as samples in some province, factor analysis method is adopted to evaluate the debt risk for these 22 colleges and give a basic evaluation for these colleges' debt risk.Finally, the solution and proposal have been provided to prevent and control the debt risk through three respects including government, bank and college.