Governance Effect Of Capital Structure Of Small And Medium Enterprise Board Listed Companies

Small and Medium Enterprise Board was build in Shenzhen on May 17, 2004. To December 31, 2006, there have been 102 small and medium enterprises that came into the market in the short two years. It is developing so rapidly. Small and Medium Enterprise Board has enlarged channels of financing of small and medium enterprises. Its development is propitious to allocating resource of the capital market widely and optimizing the structure of the financial market. Because of the limited of the research time, academia have not study the Small and Medium Enterprise Board Listed Companies thoroughly. Especially, governance effects of the Small and Medium Enterprise Board listed companies are unknown. So we need to study the governance effects of the Small and Medium Enterprise Board listed companies udder our country special system background thoroughly.On the view of theoretical analysis, capital structure is closely related to the enterprise's value, and the same as Small and Medium Enterprise Board listed companies. Because capital structure are the reflections of rights and incumbencies of stakeholders. It decides and has influence on corporate governance structure. Then it decides the enterprise's behavior and it has influence on the enterprise's value. Governance effects of capital structure can be divided into governance effects of equity financing and governance effects of debt financing.Using the Small and Medium Enterprise Board listed companies as samples, the empirical research showed that capital structure have negative governance effects. Governance efficiency is declining as the enhancing of debt-asset ratio. Stockholders of state-owned, legal-person and public people don't have obvious governance effects. Stockholders of managers have positive governance effects. Rates of ownership concentration have positive governance effects too. On the view of the structure of debt's interest, debt in interest of Small and Medium Enterprise Board listed companies has significant and negative governance effects. On the view of the structure of debt's term, long-term debt of Small and Medium Enterprise Board listed companies has significant and negative governance effects.We can optimize listed companies'ownership structure to control financial risk by these measures base on theoretical analysis and empirical research. The measures include: perfecting the enterprise's debt-constraint scheme, enlarging channels of financing of Small and Medium Enterprise Board listed companies, innovating the bank sector, strengthening the monitoring ability of stockholders and so on.