Analysis Of Financial Governance And Construction Of The Evaluation Index System For Public Universities In China

At the turn of the century, higher education in China has underwentgreat-leap-forward development in the past three years and has realized the change ofelitist education to mass education in its remarkably unique speed and means. In thecontext of higher education market, for the sake of controlling finance, enhancingfinancial management, improving fund efficiency, accelerating interior managementsystems reform and setting up a corporative framework in colleges and universities,government, society and higher education department gradually and widely payattention to ameliorating financial governance for China colleges and universities.Based upon the conclusion of relative theories, this article firstly identifies issues inneed of further study in financial governance area, which infers this paper’stheoretical and practical value; then after description of theoretical basis of publicuniversity financial governance from the perspective of agency theory and new publicmanagement theory, the related concepts about public university financial governanceare defined, and the key factors as subject, object and goals are clarified together withfinancial rights allocation, which is the core of financial governance structure. Inaccordance with the basic principles in higher education financial governance rating,the paper promotes a quite complete higher education financial governance index(HEFGI) based upon the mature financial indicators system. Afterwards, the paperapplies AHP method to allocate weights for levels of indicators, and also definesscore intervals. The practicability is proved through a specific case study. Last but notleast, the paper systematically and comprehensively puts forward some advice ofsetting up financial governance system to ameliorate financial governance for publiccolleges and universities in China.