Study On Exterior Environment, Capital Structure Of Corporate And Corporate Governance

The capital structure of corporate is also called financing structure, which means origin , composing and relationship of all kinds of fund. The study on capital structure is one of the most important part of financing theory. From the paper named "The cost of capital, corporate finance and the theory of investment" coming out, Modigliani and Miller established the theory of capital structure, and the theory has developed for more than 40 years. In the middle of 1970s, many financial economists propose a lot of new models of imperfect capital market. In those days, it's golden ages of corporate finance science. But someone assumed that the theory of capital structure could not be advanced.We all know that classic financing theory is based on rationalistic hypothesis, EMH and hypothesis of maximum value of shareholder. Its conclusions are based upon the analysis of partial equilibrium. And the theory implies the decision of capital structure was the free choice of the corporate, who was only concerned with gain and loss. They didn't consider exterior environment, such as law, capital market, circumstance of industry and so on. Further more, they ignored the effects of capital structure on corporate governance, and the impacts of each other. With the beginning of new theory of consumers and firms, human capital is accepted by more and more people. It brings the enterprise theory and theory of capital structure a new problem: when the boundary of enterprise changes, its capital structure will also change. And the change gives the theory of capital structure a new way to develop.The theory of capital structure is changing with the economy . It has been combined with the theory of industrial organization, theory of law, behavior theory of finance, and theory of corporate governance. Deriving from classic theory, theory of strategic financing, behavior theory of corporate finance, and theory of governance structure. It seems that theory of capital structure appears a new prosperity.This paper begins with a new sight point, and integrates theory of exterior...