Empirical Research On The Influencing Of Corporate Governance On Corporate Entrepreneurship In Listed Companies—The Mediate Role Of Capital Structure

Corporate entrepreneurship has gained extensive and continuous attention as it is the path leading to sustainable development, core competence and excellent performance. China, as one of the most entrepreneurial areas in the world, is under dramatic economic transformation, which brings both opportunity and risk to Chinese companies. Therefore, looking into the entrepreneurial activities of Chinese companies and providing both theoretical and practical guidance is of great significance to their long-term growth, which further ensures a more stable and healthy economy. This paper attempts to build a model reflecting the mechanism of corporate entrepreneurship for Chinese listed companies by exploring the effect of corporate governance, capital structure in the specific Chinese economic environment.The paper draws following conclusions from the empirical analysis using the data of91listed companies (2009-2013):(1) ownership concentration, management share-holding rate and CEO duality of listed companies in China have significant influence on their capital structure.(2) capital structure has a significant influence on two specific corporate entrepreneurship activities as exploration activities and exploitation activities.(3) management share-holding rate has a significant influence on companies’ exploration activities, While ownership concentration, management share-holding rate and CEO duality will affect exploitation activities.(4) capital structure plays a partial mediating role in both relations mentioned above.The theoretical and practical contributions of this paper are summarized as follows:Firstly, this paper has greatly enriched existing research by putting forward the idea that in a transition economy like China, corporate governance, financial structure have a major impact on corporate entrepreneurship. In the second place, this paper has successfully discovered the mechanism of corporate entrepreneurship by exploring the influencing process of corporate governance, financial structure. Moreover, this paper offers practical suggestions on corporate governance, financial structure and entrepreneurial activities for listed companies in China, based on the results of empirical studies.