The Financial Operation Of For-profit Higher Institutions In The United States And Reference For China

For-profit institution has brought amazing changes for higher education in the United States, resulting great economic and social benefits. The United States is the largest and extraordinary country in the field of for-profit higher education, and Apollo Group is the most representative for the United States' for-profit institutions.The purpose of this paper is to learn from American for-profit institutions' organization of financial resources, promoting the development of private higher education in China. With the rapid development of private higher education of China, more and more profit-seeking capital capitalized on private universities. It is a burning question about how to organize the financial resources of Chinese private universities. As well as what it can learn from experiences of American for-profit institutions' financial operation is an identified issue.For the first time, the paper analyzes for-profit institutions of the United States microscopically, revealing accomplishments and problems in finance of Apollo Group and recommending to the financial resources of private higher education of China. These are innovation and practical significance of the paper. For-profit institutions set up by investment in educational institutions, and investors possess the ownership and usufruct. Financial analysis analyzes and evaluates solvency, profitability, operating capabilities and development capacity of past and present related financing activities, investment activities, business activities of enterprises and other economic organizations. In view of this, the characteristics of financial operation of Apollo Group are short-term liquidity, effective management of long-term liabilities, reserves and retained the effective management of real estate, and reasonable budget strategy. Therefore, under the centralized financial management, accomplishments of for-profit institutions of the United States are market-oriented finance mechanism, students-oriented capital expenditure, academic-oriented financial operation and boss-centered financial run. The problems are deviation of profits and values, conflict of numbers and quality. However, there are also some problems of private institutions of China, like over-reliance on fees, week financial mechanisms etc.. For these problems in China, combined with the financial resources of for-profit institutions of the United States, the paper provides some solutions. They include that academic development should be based on financial stability, good financial performance should be based on professional financial management, expenditure connects with saving return, investment should be carefully reviewed and financial faults should be handled quickly and efficiently.