Study On Financing Of Private Universities In China

From 1980s, the private universities were resumed and expanded vigorously in China, increasing the higher education supply, fulfilling the urgent desire of people who want to study higher education, expanding the input of higher education effectively, promoting the management system of higher education and running an education institution certainly. Private universities have to be profit-and-loss responsibility in managing after funded by social force. At present, under-capitalization of education has become the bottleneck restraining the development of private universities in China. A real problem facing the civilian-run colleges and universities of the present stage is that funds throws into deficiency. How to solve the problem by financing during the duration of a private university perplexes the further development of private universities in China.Combining the normative analysis and positive analysis, based on the Theory of Education Quasi-Public Goods and the Theory of Sharing Education Cost, this thesis analyzed the problem of financing of private universities in China. By studying on diversify financing mode of private universities, this thesis discussed the method of opening up new financing channels to solve the problem of the deficiency of fund and to support development of universities.Logically from theory to practice, this thesis analyzes theories related to higher education financing at the beginning. In the second place, it analyzes China's private universities financing's development history, stages and features. Based on the studying on private universities'financing channels at present, the paper points the main problems and reasons of financing and indicates main reasons obstructing the development of private universities are narrow financing channels. In the third place, in comparison with which private universities'financing in developed countries, it points that China's private universities should study their successful experiences. After that, it analyzes stock financing and non-stock financing specially in order to study opening up new financing channels and proves academic feasibility and necessity of both diversification of financing channels and innovation of financing methods of private universities. Finally, the article assumes that, in order to help private universities solve financing difficulty, governments ought to give it more supports.