When Universities Meet the Stock Market: Institutional Logic, Organizational Change, and Governance Challenges in the Listing of Chinese Private Universities

Abstract

Against the backdrop of global trends toward marketization and capitalization in higher education, Chinese private universities have gradually initiated a wave of listings since the 2016 amendment to the Law on the Promotion of Private Education, marking a significant turning point in the deep integration of for-profit educational organizations into the capital system. Drawing on the concept of “academic capitalism,” this study integrates institutional logics theory, the notion of university spirit, and the resource-based view to examine the institutional motivations, organizational changes, and governance challenges associated with the listing of Chinese private universities. The study finds that financial pressures and developmental needs drive private universities to pursue capitalization pathways, often leveraging overseas listings to overcome resource constraints. However, the embedding of market logic has triggered organizational transformations characterized by a performance-oriented approach to teaching objectives, the corporatization of managerial decision-making, and the commodification of teacher–student relationships, resulting in risks to academic autonomy and the public character of education. This process reflects a profound tension between instrumental rationality and value rationality and highlights the governance dilemmas faced by hybrid organizations navigating multiple, often conflicting, institutional logics. The study argues that sustainable, substantive development in private higher education can only be achieved by establishing coordination mechanisms that balance capital efficiency with educational principles, enhancing differentiated regulation, and improving transparency in internal governance.