An Empirical Analysis About Governance Structure Of China's Private Listed Companies Affecting Capital Structure

Capital structure and corporate governance are the key issues in the theory and practice of enterprises, which are closely related with each other. In recent years, the scholars mostly concerned about the impact of capital structure on corporate governance, but often overlooked the impact of corporate governance on capital structure; in fact, the new theory of modern capital structure has shown us the future research, corporate governance, a system of arrangements, impacts on capital structure. If the corporate governance has problems, to a certain extent, it will be reflected on the capital structure, the level of corporate governance affects the optimization of capital structure.China's private listed companies started lately and theory of private listed companies was limited. Therefore, we studied about the China's private listed companies to analyze the affects of governance structure of china's private listed companies on capital structure through qualitative and quantitative; we got the conclusions which could provide reference and guidance for the reform of private listed enterprises.This paper was based on the corporate governance theory, following the development of capital structure theory, analyzed the development status of corporate governance and capital structure of private listed companies and discussed how the capital structure affects the corporate governance structure. The aim of the study is to provide a new method and thought for research of capital structure problems, provide theoretical guidance for optimizing the capital structure and perfecting the corporate governance of China's private listed companies.Firstly, this article elaborated the theory of capital structure and corporate governance, and theoretically analyzed the relationship between them. Secondly, based on a series of statistical data, we preliminary analyzed the development situation and existing problems of the private listed companies. Thirdly, on the basis of the research hypotheses, this article selected asset-liability ratio, current liabilities ratio, and long-term leverage ratio as a measure of corporate capital structure, selected corporate governance factors as explanatory variables, and selected the company resources factors as the control variables, then we discussed how the corporate governance structure affected the capital structure from the two aspects: on one hand, this study used Factor Analysis to Reduction to eliminate the impact of variables correlation to regression analysis, and identified the key factors of the capital structure of private listed companies, which can be used as independent factors of the corporate governance to regression analysis; On the other hand, we established corporate governance evaluation models by Principal Component Analysis Method and researched on the relationship between corporate governance level CGI and capital structure. Finally, on the basis of the theoretical analysis and empirical research, this paper provided the following recommendations on optimizing the capital structure and corporate governance of China's private listed companies.