Capital Contracts and Balance of Power: Logic and Mechanism of University Governance

As diversified in investment subjects of modern university, university has become a contract between material capital and human capital. It takes the main body status that the university internal administrators, the faculty and the students are human capital owners. Also the university governance especially highlight at property right of human capital as the main features of the professor's power by the reasonable allocation of right and responsibility. The professors' academic governance is the focus embodiment of human capital's property rights in the university. The university governance should take the balance of power mechanism to ensure its effective implementation as the specific measures by exploring the relationship of property rights between subjects of the university internal governance, and completing in the incentive and supervision mechanism, and improving property right structure and governance structure of the university internal.