On Optimal Capital Structure And Corporate Governance Improvements

Science 1980's, corporate governance has become a worldwide theoretical and practical problem about enterprise, and more and more people have began to pay attention to it. In this article, the author discussed the corporate governance problem based on analyses of capital structure of enterprise. In Chapter 1 and Chapter 2, after analyzing the relationship between the capital structure of enterprise and the corporate governance theoretically, the author studied comparatively the two typical corporate governance models deeply:After comparing the characteristics and the forming reasons of corporate capital structure in "UK and USA" and in "Germany and Japan", the author analyzed the relationship between the two typical corporate governance models, market-led corporate governance and bank-led corporate governance, and their corporate capital structures. And then, it is obviously that the corporate capital structure affects the corporate governance powerfully and practically. The author also analyzed characteristics, strong points and weak points for each of the two models. So our reforming of corporate capital structure and selecting of corporate governance can use it for reference more practically.Chapter 3 is concerned with corporate capital structure conditions and corporate governance problems of Chinese listed companies. The author pointed two limited factors exist in Chinese listed companies------absence of ownership of State-owned stock and limited currency of capital market. This brought about "the double weakness"------the shareholder's control is weak in inner corporate governance and the outside corporate governance system does not exist there.Based on Chapter 3, in Chapter 4 the author set forth suggestions at two aspects:First of all, we should strengthen and perfect the inner-corporate governance through certifying the ownership of the capital in the short term; And set up outside-corporate governance little by little through developing capital market in the long term.