The Influence Of Financial Risk On The Performance Of The Research University

Constructing a research-oriented university is not only a requirement for the long-term development of the university itself, but also a basic need for the national development strategy. Therefore, it needs to motivate all the internal working enthusiasm besides increasing the financial investment. Effective financial management has strong influence on building a research-oriented university. This paper aims to reveal how financial risk influences a university’s performance. Combining the literature reviews and studies, this paper believes that financial risk has four dimensions, including the system and mechanism of a university, financial operation, external factors and managers’ abilities. Meanwhile, the university’s performance also has four dimensions, including scientific research performance, financial performance, developing ability and training programme for the employees. This paper uses AMOS model to test how the sub-dimensions of financial risk influence the sub-dimensions of university’s performance, and the results shows:(1) System and mechanism of a university has positive correlation with the university’s performance;(2) Financial operation has positive correlation with the university’s performance;(3) External factors has different influence for the university’s performance;(4) Managers’ abilities has positive correlation with the university’s performance.In the end, this paper put forwards there suggestions: perfecting the system construction, separating the authorities, completing financial management system. This paper is of theoretical and practical help for improving the performance of a research-oriented university.