Research On Financial Information Disclosure System Of China Public Universities And Colleges

Along with the continuous deepening of the reform of institutions, colleges anduniversities have begun to reform and development, because of the diversity of theuniversity’s enrollment and expansion of the school system, government funding hasbeen unable to meet the college’s increasing demand for funds, universities havebegun to select a wide range of method of financing, such as bank loans, tuitionrevenue, and so on. The diversification of university financing ways have changed theuniversity sources of funding structure and relevant stakeholders. Therefore, collegesand universities like a business, there are a large number of stakeholders and agencyrelationship. In order to avoid the principal-agent problem, the public demands thatfull disclosure of operational information. However, the information disclosuresystem reform of China’s colleges and universities is relatively late, the current statusof university information publicly in China are still have some gaps, both from publicchannels, open content and the extent of the information disclosed and the content ofthe disclose is not comprehensive enough, the information disclosed is not systematic,and can not meet the decision-making needs of information users. In view of this, theuniversities have gradually begun a series of reforms, such as the College FinancialRules, Accounting System in Colleges, universities asset management, universitybudget revenue management and other aspects of the formation of a series of rulesand norms, and in2010published a "college financial information disclosureapproach ", constitutes the legal basis for a series of college information disclosure.Although there has been a series of laws to regularize the disclosure ofinformation in colleges and universities, but because of the special nature of theinternal governance structure of universities, and there is the absence of owners,colleges and universities during the information disclosure initiative is not strong,when it comes to some of the college financial information, such as income fromfinancial allocation, budget and final accounts information, performance information,colleges and universities are not do very well on information disclosure, on the onehand is because of the government information disclosure, on the other hand, China’scolleges and universities lack of theoretical guidance about exactly what informationshould be disclosed, and how disclosure, as well as how it will urge and improve theinternal governance structure to strengthen the intrinsic motivation of collegeinformation disclosure, above all need to make a comprehensive study.Public university management objectives as a guide, principal-agent theory asthe basis, collation a large number of colleges and universities as sample, through thefinancial information disclosure status, collation, comparison and analysis, summaryof financial information disclosure status of public universities, through sampleanalysis shows that disclosure of financial information of public universities in thelegal system to protect in the context of improved, but in the content and disclosure of financial information systems are still insufficient. Through analogy research methods,build a public university’s financial information disclosure system suitable for China.Mainly consist of financial statements report information sheet and financialperformance reports of three parts, of which the financial statements include a balancesheet, revenue and expense statement, cash flow statement and budget estimates,financial performance report is a university-based accounting operational performancestatements made on the basis of the performance analysis. Second, improve theinternal management of public university system, and enhance the disclosure offinancial information inherent enthusiasm, while strengthening external oversightmechanisms and independent third-party audits. The financial information disclosuresystem can fully reflect the performance of the operational management of publicuniversities, public colleges and universities to strengthen internal management level,the lifting of fiduciary responsibility to enhance social credibility.