Evaluation of Stakeholders ' Influence on Financial Risks of Non-profit Private Universities in China

Abstract

The Chinese government issued legislation that required private universities to classify and register themselves as either for-profit or non-profit. Then the vast majority of private universities choose non-profit, which makes non-profit private universities become the most important part of China's private education. Non-profit universities account for the vast majority of private higher education in China. However, due to excessive borrowing, lack of effective management, and other reasons, financial risks generally exist in financing, investment, capital operation, and other links. The existence of this financial risk and its negative impact is the problems and difficulties in the governance of private education. Based on the stakeholder theory, this paper constructs the stakeholders' influence system of financial Risks in non-profit universities, and uses AHP to determine the weight of each factor. According to the weight results, the influence levels of each factor are divided. The division results show that the sponsors and senior management have Grade I core influence, the government has Grade II important influence, and teachers and students have Grade III weak influence. Finally, the article puts forward measures to prevent financial risks of non-profit private universities according to the influence of different stakeholders.