On Relationship Between Influencing Factors Of Capital Structure And Efficiency Of Corporate Governance

Since the 1990s, the theories of capital structure and corporate governance are hotspot issue generally concerned by the domestic and foreign theorists and practice sectors. These years some global businesses are dropped out of the stage of history because of inefficiency management, bad capital structure or disequilibrium of governance and so on, which arouse people'attention. This paper mainly researches the relationship between capital structure's influence factors and corporate governance efficiency. Firstly, it introduces the background of the research. The famous MM theory is put forward by Chelsea Annie and Miller Since 1958, which opened the prelude of capital structure theory and laid a solid theoretical foundation and the research directions for the following scholars who are specialized in the studies of capital structure and corporate governance efficiency. Secondly, it introduces the relative theories and defined the concept of capital structure, what is more, according to the development history and characteristics of different theory system, capital structure is divided into four periods 14 kinds of theory: early capital structure theory (net earnings theory, net operating revenue theory and traditional compromise theory), medium-term capital structure theory (tax-free MM theory, fixed MM theory, miller model and balance theory), later capital structure theory (signal transmission theory, financing the pecking order theory, incentive theory and control theory) and the theory of modern capital structure (capital structure management control theory, industrial organization theory and market camera choice theory). Thirdly, it introduces the corporate governance efficiency. After defining the corporate governance, it analyzed and summarized the corporate governance efficiency at home and abroad, and divided into three kinds of the management efficiency evaluation methods, which is including profits, value of classes and balance. Then it introduces the corporate governance modes of western developed countries, which is mainly including English-American model, Germany-Japan pattern, and Southeast Asia mode. It also analyzes the advantages and disadvantages of different patterns and also lays a solid theoretical foundation for the following studies. Fourthly, the paper analyzes the present situation of real estate industry in China. According to the actual conditions of our country, it analyzed and summarized the characteristics capital structure and the status quo of corporate management efficiency in real estate industry which comes into the market, Fifthly, it gives demonstration analysis and conclusions. Based on the annual data of the real estate which comes into the market in our country, this paper confirms the relevant research samples and demonstration analysis methods. In term of the relations between the influence factors of the capital structure and corporate governance efficiency, this paper concludes and put forward Suggestions on how to optimize from internal factors and external governance.