The Related Analysis On Financing Mode And Corporate Governance Of Listed Companies In China

As an importance in modern enterprise system, listed companies governance in China hasn' t been noticed until last several years . Because corporate governance is a plentiful system which consisted of structure, organization, institution and operation, the author considers, these discussions and researches of it can be spread from many angles. In modern companies, financing mode is related to corporate governance. Financing mode has been divided to equity financing and debt financing, and these two financing have different earning flux droit which can compose different control right of company management and cause the structure of corporate governance.Financing structure is always an important question of finance realm from Modigliani and Miller advised MM model on 1958. The major purpose that this paper considers financing mode is to analyze what is the matter with financing mode and governance structure, and advise to optimize enterprise management efficiency.The reason which caused inefficient governance of listed companies in China is rest with irrational equity structure and invalid debt inhibition. This kind of equity structure distorts insider control mechanism and results in the lower governance efficiency of listed companies. Whereas the question of corporate governance, this paper provides a study on the relationship between financing mode and governance efficiency of listed company in China and advise to optimize capital structure and improve governance efficiency so as to increase performance of listed companies.Below is the structure of this paper:The first part is the universality theory of financing mode and corporate governance.The second part is concerning the immanent relationship between financing mode, financing structure and corporate governance.The third part is the key content of this paper which provides a demonstration analysis on the relationship of equity structure, debt structure and corporate governance.The fourth part is the conclusion of this paper which provides the advices to improve the efficiency of finance structure and corporate governance base on the demonstration analysis on part 3.