The Research On Capital Structure Of Listed Company In China And Corporate-governance Structure

Through ten years' development, the remarkable achievement is acquired in the securitymarket. However, as a jumped-up market of short history, it also has many problems during itscontinuous development, of which the outstanding one is the defect of the governance structureof China's listed companies. Capital structure is a centralized reflection of shareholders' rightsand obligations, which determines the managing structure of corporations, and has furtherinfluences on the governance efficiency.Compared with the highly grown macro-economy, the corporate governance of the listedcompanies in China stays far behind and has become the bottleneck in enhancing the corecompetitive forces and deepening the economic system reform. The problems in corporategovernance to a great extent could find their roots in capital structures. Just as Williamson said,capital stock and debt are not so much financing tools as to control and regulate structure. Thekind of capital structure determines the kind of corporate governance. A rational capital structureis the basis of effective corporate governance. Therefore, studying for the problems of corporategovernance based on capital structure has significant meaning for improving the market system.Base on the theory of capital structure and corporate governance at the beginning of paper, thepaper builds the framework to analyze how the capital structure influences the corporategovernance. This framework includes the analysis of both equity structure and liability structure.In this framework, the article analyzes the influence of the equity structure and liability structureof the listed Chinese corporations on governance. What's more, based on the analysis, the paperput forward advices about how to improve the governance structure of our listed companies.