Comparison Studies Of Assets Management Patterns And Dispositions Of Universities’ Foundation Between Chinese Universities And America Universities

In today’s social economy and culture, universities’ teaching and research activitiesfeel a pressing need of strong financial strength as the backup. For better developmentand solving the educational funding problem, they should be more active to raise fundfrom the society in addition to the state or the government. Moreover, they should alsomanage to raise the value of these funds for further sustainable development. Comparedwith domestic university endowment fund, western university endowment has a longerhistory and more mature in management, therefore, domestic universities could learnhow to manage endowment funds effectively after the analysis and comparisonsbetween China and other Western countries.This paper mainly focuses on comparisons of assets management patterns anddispositions of universities’ foundation between Chinese universities and Americauniversities. First, this paper gives a brief description of the relevant concepts andtheoretical models. In addition, it offers clear definitions of two concepts: endowmentfund and assets disposition and explains the portfolio selection theory adequately. Thereare also detailed literature reviews for analysis and comparisons between universityfoundations of China and the USA from the following four aspects: organizationalstructure, donation form, investment mode and legal regulations.Second, this paper takes Harvard University (USA), the University of Texas (UAS)and Tsinghua University (China) as the examples to compare the current situation of themanagement of the university endowment fund of both counties. Analyses areperformed based on the progress, funding management patterns and investment incomeof the three foundations, which provides rich case studies for discussions about assetsdisposition difference next chapter. Finally, this paper reveals the difference between China and the United States inthe endowment fund asset disposition model from the base, form, beneficial result andrisk of the asset disposition. The conclusion is that compared to universities in China,USA universities have higher asset disposition bases, more diversified forms, higherincome and more comprehensive risk management systems. These are mainly becauseof some weakness of our country such as inadequate legal, non-popular donation culture,conservative investment psychology, inaccessible financial information and thedifficulties of attraction and maintenance of talented persons. The paper also suggeststhat it would be wise and useful if our university foundations could adapt the Americaasset disposition model, establish correct investment management mentality, strengthenthe supervision of monetary information, absorbing more professional human resourcesand portfolio diversification.