Study On Financing Structure And Corporate Governance

Financing structure is the ratio relationship among different financing methods and respective financing quantity of the enterprise. It involves debt and equity structure in a narrow sense, but also includes internal and external, direct and indirect financing structure in a broad sense. Focusing on its narrow sense, different equity and debt may bring on different rights; the combination of these rights materializes practical governance structure on an operation level of the eneterprise.Macro financing system determines micro financing structure of the enterprise, and further gives impacts on the selection of governance mechanism and improvement of governance efficiency. Currently in mature market economies, there are two typical financing systems which are market oriented and bank oriented. The two types of financing systems correspond to two types of governance mode. Whether positive effects can be given by financing structure in the corporate governance is determined by the existence of endogenous qualified supervising body. The equity structures of Chinese listed companies are somehow complex, and ratio of stateowned share is relatively high, ratio of tradable share is relatively low. Those conditions greatly weaken the resource allocation function of the equity market.. At the same time, corporate bond market is in slow development, government bond market is in dominant station, these situations makes Chiense listed companies lack of financing tools, bank loans become the major financing tunnel. These issues in the financing structure directly reflect on corporate governance structure, such as serious internal person control problem, unfitted stimulation and supervision mechanism, and lagging in institutional investor development.In overview, the defects in financing structure of Chinese listed companies are fundamentally caused by the absent of qualified supervisor, and the defects further cause deterioration of governance structure status. Therefore, in order to establish effective corporate governance structure, we must establish an equity structure comprises with institutional investors and enterprise juridical-person share-holders, and a debt structure comprises with major debtee and bank supervisor. A mutual governing mode combined by internal and external governance mechanism is the direction of Chinese companies' governance structure opmization road, only by doing this, we can jfundamentally change the financing structure of Chinese companies, and form qualified superving body.