Financial Risk Early Warning Model
With college expansion, merging schools, and building university towns, the situation has worsened so much that university funds cannot make ends meet. Analyzing the causes of financial risk using the method of discriminate analysis, establishing early wa
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Financial Risk Early Warning Model Hong Wang, Jun Zheng, Lu Yang Gao and Hui Wang
Abstract With college expansion, merging schools, and building university towns, the situation has worsened so much that university funds cannot make ends meet. Analyzing the causes of financial risk using the method of discriminate analysis, establishing early warning model, and taking effective preventive measures have become the most important financial tasks in the university. The author believes that to strengthen the university financial risk, early warning and prevention is a prerequisite to ensure the comprehensive strength, financial operating performance, and financial development potential of university financial, conducive to improving and strengthening the macro-financial management. It is also very necessary and effective to ensure a healthy teaching order and orderly development. For the development of education and financial balance, it plays a very important role. Especially with the reform and development of education in China, the number of colleges and universities have continued to increase, and the financial management of universities faces a complex situation. Keywords University financial analysis
Risk Warning The method of discriminate
63.1 Introduction With an increasing number of China’s education reforms and development of institutions of higher learning, school expansion, colleges and universities within the professional setting, enrollment plan, graduation assignments, and logistics management have undergone profound changes [1–3]. The process of running the H. Wang (&) J. Zheng L. Y. Gao H. Wang Finance Department, Hebei United University, Tangshan, China e-mail: [email protected]
Z. Zhong (ed.), Proceedings of the International Conference on Information Engineering and Applications (IEA) 2012, Lecture Notes in Electrical Engineering 218, DOI: 10.1007/978-1-4471-4847-0_63, Springer-Verlag London 2013
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economic behavior tends to be diversified; the financial management of the school is facing a more complex situation [4]. Colleges and universities as independent non-profit organizations, under the national macro-control, for the community, engaging in all financial activities, have a certain autonomy in raising funds for schools and using the funds for education [5, 6]. The university financial management has changed from no risk management under conditions of planned economy to risk management in market economy conditions. Practice has proved that the reform in the university management system provides the conditions to raise funds through various channels for colleges, promoting the development of higher education [7, 8]. However, for colleges and universities as non-profit institutions, in many cases the income of the school organization is difficult to offset increasing expenditures. Therefore, there is a sudden increase in financial risks. How to understand and actively prevent financial risks to ensure the university health, stability, sustainable developm
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