The Analysis Of University Liability Operation Risks And Strategies

After China became a member of WTO, the intense competitions have accelerated the increasing citizens'awareness of spiritual culture and the pursuit of knowledge and higher education. It has provided a solidly social basis of development of higher education. Meanwhile, it caused a rapid development of higher education. In 2007, the enrollment rate of universities'students reached 23% which is the target of higher education generalization. However, the shortage of educational funds hindered the development opportunity of higher education. Since the universities started to offer more places to students, all of the universities increase the input of fundamental facilities, teaching and research and the level of teachers in order to promote the integrated quality of higher education. Under this circumstance, despite the amount of educational funds provided by government rises every year, it is not adequate to fulfill the demands. Therefore, lots of universities try to rise funds through other channels that loans from bank is the best and most convenient way to rise educational funds.Nevertheless, loans can help universities'development while it also brings them high financing risk. According to the recent data of universities'loans, substantial educational loans already constrained the development of universities. For instance, some universities cannot pay back the loans even the interests. In fact, the shortage of funds has already affected the quality of higher education a lot. Hence, it is urgent to prevent the risk of liability management of universities through analysis of the liability management status, existent problems and the potential causes. This paper starts from the research of background, then evaluates and synthesizes the relevant researches conducted by other researchers in order to identify the problem needed to be solved. Moreover, the liability management status of universities and its reasons will be analyzed via literature review and data collection. And the risk of higher school liabilities operations evaluation and analysis of shanxi five universities by nearly three years in the financial of empirical analysis. Hence, we can raise the proper strategies of risk management.