Research On The Impact Of Funding Resource On University Performance

"Abundance of resources is a guarantee of being world-class universities", and the financial resources is an important base of a university. Being world-class universities is a strategic goal of all the universities in China. But nowadays, these universities don’t own enough money to develop themselves, thus, they can’t satisfy all the country’s needs. So we explore the relationship between universities’ funding and their performance in ranking lists, in order to give some suggestions for higher education investment policy in the future.This paper analyse the indicator data of subordinate universities of Ministry of Education and the indicator of the universities’ performance. Through the correlation analysis, we can find that the changing trend of university’s funding is similar to the changing trend of the university’s performance, and universities with industrial features will have higher input-output rate than the comprehensive universities, and the large scale universities will have better performance in ranking lists. Then when we look into the structure of the universities’income, we can see that the higher the teaching income ratio is, the worse performance of a university will be, meanwhile the higher the research income ratio is, the better performance of a university will be. By analyse some focus policies in higher education, we find that the financing policy will drive all the higher education institutions in the country to a better place.In the end, there’re some suggestions. For example, government should allocate more financial resource to the higher education insititutions; universities should make more ways to get funding; government should promote the right of funding use, so that universities can use the funding more flexible according to their needs; universities should improve the commercialization of research achievements to access to more income; universities should strengthen supervision and management of funding.