A Study On The Endowment Fund Financing And Investment Of Private Universities In Taiwan

The purpose of this study is to analyze the endowment fund of private universities inTaiwan, and summarize the experience on the endowment fund management andinvestment, so as to make suggestions for financial adventure and problems.This research is based on documentary analysis from the financial Statementsand accountants’ reports of four private universities in Taiwan. Case study andinvestigation method are also used. Conclusions are as follows:1. Because of the diversity sources and the stable proportion, the endowment fundensures universities in a good condition.2. The relatively laws and regulations are enough, which can prompt the financialsystem more standardization.3. On the investment of endowment fund, these four universities are all devoting tosubsidiary body, in which way, not only can they expansion the endowment, but alsoconduct teaching programs and extension education.4. The Taiwan government only assumes20%of the funds. And the majority privateuniversities have limited fundraising abilities. The result is that they have little moneyon the investment.5. Most of the financial instruments they use are risk aversion, and time deposit in thebank is the common practice.6. Many universities are lack of investment management teams and risk managementsystem in financial excise.7. Based on the financial statements, the majority of the private universities aretraditional at conducting financial transactions.