The Impact Analysis Of Local Universities Education Funds Investment Structure On Performance

China’s higher education has made tremendous development since the PRC was founded63years ago. The expansion of the China’ higher education provides human resources for therapid development of China’s GDP, especially since the enrollment expansion of universitiesin1998. However, when the scale of China’s higher education had a rapid development, theshortage of education funding for universities especially for the local universities is becomingseriously. Although the central and local governments increase financial input to highereducation, it still cannot meet the needs of the rapid development of universities in recentyears. Therefore, how to optimize the investment structure of education funds becomesparticularly important for local universities in order to enhance their performance.The investment structure of higher education funds can be divided into the source structureand the expenditure structure of education funds. The source structure of education fundsreflects higher education investment from the social resources; and the expenditure structureof education funds reflects the internal resource allocation of universities. The universitiesallocate reasonably the funding of higher education through the various mechanisms, which isobtained by means of external resources, and finally make the performance through threeuniversities’ functions of the talents cultivation, scientific research and social service. Thedifferent allocation of higher education funds from both internal and external can affect theperformance of universities.Based on the theoretical analysis and empirical analysis, this paper construct the theoreticalmodel of the influence of both through the analysis of relationship between the investment structure of local universities education funds and the universities’ performance. Then we testthe theory model by statistically analysis of education funds sources and spending data. Theempirical analysis indicates that the national financial appropriation proportion on theinfluence of the universities’ performance is the biggest, business income proportion is second,and other income proportion minimum in the source structure of local universities educationfunds. And in the expenditure structure of local universities education, personal expenditureproportion and public expenditure proportion are related to the performance, but thesignificance is not high. The reason possibly is that local universities education expenditurestatistics failed to according to the function of the expenditure, and greatly reduce theempirical analysis accuracy. Therefore, this paper holds that the investment structure of localuniversities education funds has a certain influence on universities’ performance. Andaccording to the results of the study in this paper, we put forward the corresponding policyrecommendations from the two perspectives both the education funds external configurationand education funds internal use.