The Optimized Path Of Internal Governance Strcture Of Private Colleges

As an important component in China's higher education system, private colleges develop fast in recent years. However, family management mode generally exists in private colleges and the investment is not relatively separated from its management, which affected the sustainable development of private colleges. This paper, based on the related theories, analyzes the status of the internal governance in private colleges, puts forward a basic framework for this governance and discusses the approaches of perfecting this kind of governance. Thus, this study is of far reaching importance for the sustainable development of private colleges.The theoretical research of this study is combined with case analysis. Firstly, the paper, based on stakeholder holder theory, principal agent theory and legal theory, respectively analyzes the three theories' implications on the perfection of the internal governance in private colleges. Secondly, take S College as an example, the paper analyzes the problems in private colleges' internal governance and expounds the reasons from three aspects, i.e. lack of college system, anomie of idea of university and separation of the right to operate and the teaching right. Thirdly, this paper sets up a structure for internal governance in private colleges, puts forward the relative separation of investment and management, and composes corporate governance structure and operating mechanism for the internal governance. Finally, the paper studies the approaches to optimize the internal governance structure in private colleges. Private colleges need to clarify the property rights, improve board of directors, carry out vocational principal system, and establish a decision-making system, property relations, management system, checks and balances, constraints and incentives that are suitable for corporate governance of private colleges.