The Capital Structure And It's Influence On Corporation Governance In China

With the deeply development of state-owned corporations revolution, we pay more attentions to the corporate governance of listed corporations. According to the developed country's experience, the arrangement of capital structure is very important to improve corporate governance. Because China is in the process of economy reform, many listed corporations come from the state-owned corporations of the planned economy system and have some special characters. The objective of this paper is to find whether such special capital structure has influence on the corporate governance or not and how they influence.Based on the theory of capital structure and corporate governance at the beginning of paper, the paper builds the framework to analyze how the capital structure influences the corporate governance. This framework includes the analysis of both equity structure and liability structure. In this framework, the article analyzes the influence of the equity structure and liability structure of the listed Chinese corporations on governance. What's more, based on the analysis, the paper put forward advices about how to improve the governance structure of our listed companies.