Effect Of Capital Structure Of Governance Of A Modern Commercial Banking

It has been found that the capital structure and the corporation governance can interact each other with the development of modern theory of capital structure. Capital structure is one of the most important control mechanisms on the corporation governance. As financial companies, commercial banks also need to have an effective governance mechanism in order to assure that the owners have powerful control on the bank and the managers have enough encouragement. The capital structure of commercial banks has both the fundamental character of common company and the special character of its own. Under the guidance of the capital structure theory, considering the special character of commercial banks, the paper first commonly analyzes the governance effect of commercial banks' capital structure from the two side of the shareholder's and the creditor's control. Then the paper analyzes the governance effect of china's banks' capital structure in detail. With the development of nearly half of century, China's commercial banks have formed a system in which the four state-owned commercial banks take up the most important position and the four public commercial banks represent the trend of China' commercial banks' future. So the paper analyzes the China's commercial banks with the symbol of the above two kind of banks. First, on the basis of the eight banks' financial statements, analyzes the different equity structure and the similar debt structure of the two kind commercial banks; Second, analyzes the governance effect of the equity structure and the debt structure of the two kind commercial banks. Last, put forward the suggestion to improve the governance effect of China's commercial banks' capital structure from the two side of capital structure in the bank and governance environment out of the bank.