Cause And Evaluation Research On Overinvestment Of Chinese Public University

Since 1999, Chinese government adopted the policy of expanding universities'enrollment, each university expanded big scale investment at large and the investment of some university add up to billions of yuan. A few universities are very luxurious and the campus they construct is far more than the standards which the basic conditions in universities and the undergraduate teaching level evaluation system provide. This triggers a vicious capital increase. In another hand, the government investment is insufficient seriously. For example, the percentage of fiscal funds decreases in succession. The universities start to operate with liability, because they have to loan money from banks. University is NPO and seems not to result in the problem of overinvestment theoretically. But overinvestment in Chinese university has become an obvious problem and is more and more prominent terrible, which has blocked the development of university drastically. As a result, this gives rise to a contradiction.This problem is worth more attention and study, but no one puts the overinvestment of university forward definitely in academia. So this paper researches it on this basis. The author hopes to make some valuable outcome in order to solve this problem early. This paper uses research methods such as Literature Review, qualitative analysis combined with qualitative analysis and comparative study. First, because it's hard to make an appropriate breakthrough in present theory of university, so this paper injects the stakeholder theory of enterprise into the research field of university. This study constructs the stakeholder theory of university, including the defintion and classification of university's stakeholder, the benefit equilibrium model of university. Then it uses this theory to carry on qualitative analysis. After that, according to different characteristics in different stages of university's overinvestment, this paper constructs short and long evaluation index system and evaluation methods on the basis of evaluation index system and evaluation methods of enterprise's overinvestment.The study concludes that because institutional arrangement of present Chinese university is short of effective check and balance system, so the government and the manager of university show far more controlling force than other stakeholders. The investment decisions of university will clearly incline to the direction which the government and the manager of university lead. However, the proactive fiscal policy, the policy of expanding universities'enrollment and the undergraduate teaching level evaluation system all lead the university to expand investment. Such control system results in the overinvestment of university and makes it form short equilibrium and long equilibrium. The study also concludes that we should take"How much pressure can the university bear?"as the standard in short evaluation, while we should take"How much money can the university raise?"as the standard in long evaluation.