| In the past three decades, one of the most fascinating phenomena of higher education development has been the rapid growth of its private sector in China. However, with the rapid decline of the college-age population and the changes of external environment, private universities are facing a critical survival crisis now. Based on a survey conducted in 2006, this paper has given an empirical analysis on the financial conditions and management behavior of the private university. The major findings are summarized as follows: (1) Majority of Chinese private universities remain fully dependent on tuition fees for survival; (2) Adjustment of governmental standard required for higher education institution increases the capital construction investment of private university, and finally leads into the squeeze of direct educational cost; (3) the fundraising strategies of the private sector include enrollment-oriented model, tuition level-oriented model, or selectivity-oriented model; (4) in order to cut spending, the private universities endeavor to restrain the personnel costs of faculty member. The above mentioned management behaviors restrict the quality and sustainable development of private university, although it has promoted the rapid advancement of private sector in the past several decades. |
