The Relationship Of Listed Banks' Capital Structure And Governance Performance In China

Under the circumstances of intensification of financial globalization and china's entering into WTO, commercial banks are confronting a great challenge. So, it is an important issue of our commercial banks' reform and development to build a reasonable, scientific and effective capital structure's governance. In the future, listed banks will become an important part of stock market. So the analysis of listed banks' governance of capital struture have a great actual meaning to the whole stock market and sustained development of the state economy.At first, this paper use the capital structure' theory to analyze the relationship between capital structure and corporate governance and analyze the relationship between banks' capital structure and corporate governance to link up with the particularity of banks' capital structure. Then, this paper describes the actualities of the each listed banks' capital structure and summarizes the common characteristic of all the listed banks' capital structure, for example, dispersive equity structure, diversification of financial structure, low asset-liability ratio and so on. Thirdly, this paper makes an empirical analysis of the relationship between listed banks' capital structure and corporate governance's effects. The empirical analysis begin with the regression of the data of all the listed company in Shanghai and Shenzhen stock markets and the conclusion is that capital structure remarkably influences the corporate governance's effects. The centralizing of stock ownership will enhance the effects of corporate governance at first. And when the the centralizing of stock ownership exceeds the optimal centralization degree of stock ownership, the centralizing of stock ownership will diminish the effects of corporate governance. The next step is to regress the data of listed banks and the conclusion indicate a positive relationship between centralization degree of stock ownership and corporate governance's effects. According to the two empirical analysis, this paper educe that the centralization degree of listed banks' stock ownership is lower than optimal centralization degree of stock ownership. At last, based on the actualities of the listed banks' capital structure and the conclusion of empirical analysis, we bring up some suggestion of optimize the capital structure of listed banks.There are two innovations in the paper. At first, it combines the theory of capital structure and corporate governance and based on the particularity of banks' capital structure to analyze the relationship between listed banks' capital structure and corporate governance's effects. Then, this paper use the standard deviation of the proportion of main shareholder's stock right as explanatory variable to analyze the relationship between listed banks' capital structure and corporate governance's effects.