Research On Financial Risk Control Of Private Universities In China

As the speeding up of the reforming and opening in China, the idea ofmarket-oriented economy had been known in all corners of the society. PrivateUniversities, which are invested by social powers, became more and more, strongerand stronger. Nowadays, Private Universities has become the new force which is fullof great development potential. However, the problems in the development of PrivateUniversities could not be ignored. For a long time, the capital shortage hasn’t beenresolved, Private Universities should obtain more capitals investment from investors,establish education teaching platform, and maintain cycle operation with admissionincome. Nonetheless, facing with the sharp competition of student source, PrivateUniversities should input a large amount of funds in improving the hardware andsoftware, because they are lacking in teaching infrastructure, education level andteacher resource. Private Universities are always operating on borrowing to solve thecapital problems, but put themselves in financial risk. A certain mount of PrivateUniversities are collapsed because of the heavy debts. Therefore, it is of greatsignificance to strengthen the financial risk control for Private Universities.The thesis starts from the factors of financial risk, then uses Public Universities’and American Private Universities’ experience of the financial risk controlmanagement. Afterwards, the thesis gives advises and suggestions on how to controlthe financial risk.