Research On Effects Of Financial Governmence Of Bond Financing

External financing of the companies in China shows obvious preference -equity financing preference and bank loans financing preference. The bond financing in China has not been given enough attention and the corporate bond market has seriously been lagged behind the development of economy. The two facts result in irrational corporate finance structure and incomplete financial governance. Bond financing can constrain and motivate the conduct of operators, which plays an important role in improving financial governance. Besides, issuing bond financing by the companies can not only inhibit effectively problems caused by the control power's interest but the cost is low, meanwhile it can help companies make the right decisions from feedback information of the balanced market price. The author combines bond financing and financial management in his research paper, hoping it will bring some enlightenment to the Chinese listed companies which stress financial governance effect of equity financing and bank loans financing, and neglect the relevant bond financing governance functions at the same time.On the basis of the economics, the finance, and some related materials, the paper focuses on the company bonds financing and corporation financial governance effect in combination to analyze the financial governance effect of bond financing by using the methods of combining theoretical analysis, comparative analysis and empirical research. Bond financing and equity financing are different from debt financing and bank loans. So by analyzing of their different treatment effect, to highlight the advantages of financial management effect of bond financing enables us understand the treatment effect of bond financing more clearly and deeply; to test the effect of bond financing of the financial governance by the use of descriptive statistical methods. What's more, it's helpful to find bond financing governance effects of the listed companies weakening in China, to analyze the causes for problems, to put forward the corresponding countermeasures and the suggestion, and finally to draw a conclusion.