Analysis on Financial Support Policy of Private Schools in China: Based on the Principal-agent Perspective

The privatization of higher education in China is one of the main developing directions of higher education in the world. However, due to the lack of financial support policies and related laws and regulations, the private higher education has largely been restricted. The support of the government’s fiscal policy to the private schools is a trend of the development of education in China. This article discusses the incentive mechanism from the perspective of the principal agent, through the construction of the incentive mechanism, combined with the national conditions, puts forward the policy and suggestion.