A Study To Capital Structure Property Structure And Corporate Governance

Generally corporate governance is legal, cultural and systemic arrangement about residual control and claim. Capital structure is the most important aspect of corporate governance, which can harmonize the profit and action between investor and manager, shareholder and creditor through shareholding and creditor's rights. Property structure is the base of property right which decides the structure and running of corporate governance. This article analyses the effect of capital structure and property structure upon corporate governance with theoretical and empirical method. Firstly, We review correlative theory about corporate governance, capital structure and property structure. Secondly, we develop theory of capital structure and property structure effect on corporate governance. Thirdly, We analyse America mode Japanese mode and Chinese mode comparatively. Fourthly, We choice electric industry and power industry to do empirical research. We draw a conclusion from the empirical theory, which show in competitive industry property structure has some relative to corporate governance but capital structure has no distinct relative to corporate governance. In monopolistic industry neither property structure nor capital structure has distinct relative to corporate governance. Lastly, We take some advice on how to construct an effective corporate governance.