Capital Structure And Corporate Governance Research

As a branch of corporate theory, capital structure has many specialties; one of which is that it is the direct bond of capital market and many corporations. The history of establishment and development of capital market in china has been more than 20 years. In this era, capital market has supplied great strength for our economic development and economic reform. And now we just stand on a crucial point of the reform of economic system, so the role that the listed companies play has become more and more important. Perfecting the corporate governance structure is necessary to upgrade the corporate quality, strengthen economic and management level and further develop the security market. All these form the research background of this essay.This thesis consists of five parts.In chapter Ⅰ, based on time development, I coordinated the theoretical development of capital structure, and made some comments on these representative theories in different era.In chapter Ⅱ, I analyzed the relation between capital structure and corporate governance in detail. It is extended in two angles, agency cost and corporate performance.In chapter Ⅲ, I compared the corporate governance patterns of stock governance model and debt governance model under different capital structures. Then I summarized the different characteristics of them.In chapter Ⅳ, using the annual reports data of listed companies on Chinese capital market, I examined the relation between debt structure, equity structure and corporate governance performance. And got the following conclusions, the governance effect of debt is very feeble and the ratio of equity owned by our state reduces the performance of corporate.In chapter Ⅴ, according to theoretical analysis and the conclusions educed frompositive research, some useful suggestions are provided to perfect the corporate governance structure and seek the solution mechanism in the way of capital structure. They are following, strengthen the governance force of bank, fully develop bond market, perfect the guarantee system of debt claim rights, realize the full circulation of stock, decrease the stock number owned by our state, introduce multiple investors, innovate the transaction system, and so on.