Study On Financing Structure And Corporate Governance Of The State-owned Listed Corporation

The financing structure is the foundation of the corporate governance; its rationality of establishment has a decisive effect on the efficiency of the corporate governance. Therefore, the setting of a proper financing structure and then the building of an appropriate governance structure for the corporation itself will have an important effect on improving corporate efficiency. In China, most of companies put more attention to the function of the property rights, less to that of debt finance. So this paper emphasizes the latter's influences on corporate governance.Some important points of this paper go as follows:1. Financing structure is the proportion of equity capital and debt capital in the western theory of economics. While this paper points out that the financing structure not only includes the proportion relation of equity capital and debt capital, but also includes the inner proportion of equity and debt respectively. This paper fully embodies the structure design.2. Financing structure gets influences from the corporate itself, the economic institutions of society, the character of the given industry and the outside factors. Therefore the financing structure needs improving from both the inner and outer prospective, referring to international experience and integrating into the national practices.3. Complicate equity structure, high-proportion state-owned equity and low liquidity of equity are main characters of the state-owned listed corporation. Different kinds of shareholders and different concentrations of financing structure produce different influences on the enterprise operating efficiency. Low rate of debt to capital, simple financing methods and soft constraint are main characters of debt structure. Different concentrations, ownerships and terms of debt structure have different influences on corporate governance.4. Debt capital has an important effect on corporate governance in theory. In fact, the function of debt is generally neglected because of incomplete market mechanism and absence of related institutions. Commercial bank is the primary financing channel and main source of financing in our country nowadays and financing method is simple. The relation of corporate and bank needs improving and the enterprise bond market need developing actively to fully function of debt finance.5. Building corporate and institutional investor-lead mode of equity structure, primary creditor and bank positively supervising pattern of debt structure are the areas of improving financing structure. Establishing the pattern of inner as well as outer governance mechanism together is the direction for improving corporate governance.