Research On The Equity Finance And Firm Mechanism Of Governance

The equity finance and firm mechanism of governance is the central component of modern firm theory, and it is an important subject of the capital theory of the finance too. The balance and ration of equity structure concerns with the perfection of the firm mechanism of governance directly, and then influences the management performances of firms. Equity structure includes the type of equity holding, nature of shareholder, the concentration and institutional arrangement of equity. On the basis of analyzing these aspects, the paper studies the firm mechanism of governance, and has put forward the approach and measure of optimizing the structure of our country's equity, and the countermeasure of perfecting the firm mechanism of governance. The paper has drawn lessons from the domestic and international research results of scholar extensively. It analyzes equity forming, the equity of characteristics, and effects on the firm governance, so as to find out the solution.The logical thinking of the paper is: theoretical discussion--practicalanalyses--positive research--perfection and measure--conclusion.Discussing gradually, it becomes a systematical framework. It draws theconclusion: the equity structure is out-of-balance and the mechanism of governances is incomplete in our country. The paper explains the causes of the unreasonable equity structure and imperfect mechanism of governance, and puts forward some improvement suggestions briefly.