Research On Financial Investment Performance Evaluation Of Institution Of Higher Education

With the rapid development of our country’s society and economy, the importance of financial investment in institution of higher education is drawing the focus of the public. The "national long-term education reform and development plan for (2010-2020)" points out that the goal of realizing the modernization of education, the basic completion of learning society, and moving into the rank of country with strong human resources power will be achieved by the year2020, which shows that the financial capital investment in education plays a crucial role. In the report of the11th National People’s Congress meeting, ex-premier Wen Jiabao clearly pointed out that in2012, the central government had arranged the national financial education expenditure budget, which accounted for4percent of gross domestic product (GDP).4%means this year’s funding for education will be more than2trillion. Based on this, this study tries to solve two problems:First, how to evaluate the financial investment performance of institution of higher education; Second, how to build a performance evaluation index system and evaluation model based on the function of institution of higher education.The financial investment performance issues of institution of higher education draw more and more widespread concern from the community. This study analyses the financial investment performance evaluation of institution of higher education economically and implementation of performance evaluation based on the discussion of public finance theory, education finance theory, performance management theory, new public management theory and so on. Through research, this study mainly achieves results as follows:(1) This study explores Chinese performance funding model of institution of higher education. Based on the study of performance funding model and performance budget management approach of institution of higher education of mainly Western developed countries, through comparing the performance funding model and performance budget management practices of the United States, Britain, Australia and other countries’institution of higher education, this study refines and sums up their main features and experience of financial investment performance evaluation and explores Chinese performance funding model according to Chinese actual performance.(2) This study builds a financial investment performance evaluation index system of institution of higher education. According to the reality of Chinese colleges and universities, seen from the University’s own functions, this study determines four factors that impact financial investment performance, including teaching, research, social services and cultural inheritance and innovation, sets the principles of performance evaluation index, determines the index weights as well as the implementation process and application of the results and constructs evaluation index system based on the effectiveness of public expenditure on education in Chinese colleges’and universities’function.(3) This study establishes financial investment performance evaluation model of institution of higher education based on DEA. On the basis of financial investment performance evaluation index system, we establish financial investment performance evaluation model of institution of higher education. Mainly using analytic hierarchy process (AHP), principal component analysis and data envelopment analysis (DEA), this study analyses the input indicators to determine the output ratio, then compares between the various institutions of higher education, gets evaluation results and establishes financial investment performance evaluation model of institution of higher education based on DEA.(4) This study does empirical research on the financial investment performance evaluation of institution of higher education based on DEA. According to the existing research results, this study uses an empirical study on DEA-based financial investment performance evaluation of institution of higher education. The paper selects the first "985institutions of higher education" as samples to demonstrate through empirical research. This study explores some problems of Chinese financial investment in education and the causes of these problems. Learning from foreign experience of financial investment in education, seen from the perspective of perfecting Chinese financial investment in education, it puts forward policy paths to innovative finance investment environment.(5) This dessertation put up with optimal path for financial investment in colleges and universities based on the results of performance evaluation. According to the performance evaluation process design, model design and empirical research before, at last this study makes optimization design of the colleges financial investment and management based on performance evaluation and puts forward policy recommendations to optimize the College financial investment performance.