Private Colleges And Universities Debt Risk Analysis And Related Countermeasures

Since the1980s, private colleges in our country are recovering and developing rapidly. Its development effectively made up for the inadequacy of China’s higher education market, which promote the reform of higher education management system and running system of our country. But in the process of development in private colleges, its primitive accumulation of capital is not enough to sustain the school unconventional infrastructure. Thus Private colleges step onto a difficult road through bank lending and folk financing in debt. Borrowing and loans is a double-edged sword for private colleges. While it do good to self development, it may bring a lot of debt tasks. If if is not settled properly, it may bring serious consequences to schools, banks, societies and our country. Thus debt expansion has become the first problem in private colleges in our country. Huge debt pushed the non-governmental institutions to the brink of survival, but there is no enough attention from theoretical and policy level. Because of this, worker education, I hope to use the knowledge of the relevant theory with the actual work experiences to make in-depth study of private colleges in our country debt risk aversion and related countermeasures provide a certain amount of researching support to the development of private colleges, the popularization of higher education and higher education reforms. This is of great theoretical and realistic meanings. In additions, the thesis is set Beijing Institute of Science and Technology Management as an example, and analyzes form origin, background, condition and the current situations of the school debts according to the theory of Cummings fund financial instability hypothesis. The analysis mainly focuses on the Ponzi finance debt risk that the college is facing nowadays. This method is of case study for MBA thesis writing and also has important practical significance in the cultivation of practical ability. The thesis is mainly subdivided into three parts.First, on the basis of literature review, it analyzes from two aspects of internal factors and external factors from private debt risk in colleges and universities in our country. The internal factors are:private colleges own development the endogenous demand for funds and irrational use of funds and lack of corresponding supervision and evaluation system. The external factors are:the governments’ under investment to private colleges and the discrimination effects from banks. The thesis makes panoramic carding and analysis to debt, the current situation, the use of borrowed money and pays a series of problems of private colleges.Second, it focuses on the key to the loans of private colleges——researches on Ponzi loans of private colleges which is based on Cummings foundation instability theory. It reveals the liability mechanism of private colleges in our country, debt present situation, problems such as huge debt risk on a whole. It has the extremely vital important reference value to governments, banks and colleges.Third, it sets Beijing Institute of Science and Technology Management as an example which illustrates the current debt, debt situation, as well as the solutions. By analyzing and summarizing those underlying problems of private colleges’debt, this thesis raises that the key of private college development lies on the reasonable system design and returning to the education itself.