The Governance Effect Study Of Capital Structure Of Chinese Listed Companies

Through the study of the governance effect of capital structure of Chinese listed companies,this paper explains the reasons of the low efficiency of corporate governance of Chinese listed companies and brings forward the policy suggestions and the direction of institution design for Chinese listed companies.Since the MM theory was put forward in 1958, the development of theory of capital structure has finished the transformation from the finance effect of capital structure to the governance effect of capital structure. Nowadays, the common argument accepted by domestic and foreign scholars is that under the existed institution framework, capital structure is the base and principle of corporate governance, corporate governance structure is the reflection of capital structure, and the efficiency of corporate governance is determined by the choice of capital structure. Our country is in the period of economic transition, the reform of stated-owned companies and the effective run of listed companies are confronted with so many problems of corporate governance.Using syntherically the latest analytical methods and techniques in the fields of modern microeconomics such as principal-agent theory, stakeholders theory and capital structure contracts theory, following the way of"theoretical research to actuality analysis to countermeasure research", this paper studies the topic on the governance effect of capital structure of Chinese listed companies systematically.Typically, this paper initiates three fresh ideas as follows:(1)defining related conceptions including"capital structure","the factors of impacting governance efficiency","governance effect","governance efficiency"under the framework of the governance effect of capital structure clearly.(2)biringing forward the two-level analytical framework of the capital structure governance effect.(3)explaining the problem of the low efficiency of corporate governance of Chinese listed companies from the angle of capital structure and biringing forward the policy suggestions and the direction of institution design for Chinese listed companies.Finally, feasible institutional arrangement which can enhance efficiency of corporate governance is not highlighted but the logistic connection behind this feasible institutional arrangement, in the other word,"why"is emphasized but not"what"in this paper.