Capital Structure, Corporate Governance And Performance

The problem of capital structure is a prolonged hot issue of corporate finance field in nearly half a century, Relevant theoretical and empirical research literature emerge in an endless stream , nevertheless, Myers , a famous financial economics of U.S.A. , still says with feeling that " puzzle of capital structure " makes people puzzled.Early Capital structure research mainly described the relationship between capital structure and corporate value or market performance, lacking strict theoretical deduction and empirical test. Although modern capital structure theory has a strict logic, its primary research subject is the impacts on capital structure and corporate value caused by firm's external factors as tax and bankrupt cost, etc. And post-modern capital structure theory introduces Institutional arrangement of corporate governance to the study of the capital structure, which has advanced the issue of capital structure research to a new stage.25 years witness fundamental structure changes with china economy's stunning boom since reform and opening up to the world. State-owed economy withdraws from the general competition industries step by step and Nongovernmental economy occupies the significant position, which gives it unprecedented opportunities for development and space for growth, and makes it be the crucial base of the China's economy and indispensable component of the Socialist market economy.China's nongovernmental listed company is the advanced part of nongovernmental economy, and fresh blood of China's capital market. Compared with State-owed Listed Company, nongovernmental listed company relatively has little quantity and small scale, but it has property right structure and system characteristic different from the State-owed Listed Company. And its behavior model is market oriented, approaching practices of listed companies in the market-based country even more.Producing and development of nongovernmental listed company brought impacts to china's capital market that first aim at serving the reform of state-owed firm, and put forward many new topics for us. One of those is about the interrelation among capital structure, corporate governance and corporate performance of nongovernmental listed company in corporate financial system, and there has no...