The Financing Structure And Corporate Governance Of Private Enterprise

Since the reform and opening-up policy has been Implemented, China's private enterprises developed greatly, and its status and role in the national economy continues to increase. At the same time, in the development process private enterprises also have a lot of problems, especially the issue of corporate governance and financing structure.Theoretically speaking, the financing. structure can not be regarded as a simple choice of tool for the financing. Since Jensen and Meckling (1976) propose the contract theory of financing structure in his famous thesis --"Enterprise Theory -management, ownership structure and agency costs", this theory has gradually developed into asymmetric information under the conditions of the financing structure Incentive theory, theory of signal transduction and control theory, which linked the company's corporate governance structure and financing organically. These theories analyze how the market value of enterprises was influenced by financing structure through the corporate governance, and elaborated on the intrinsic link between the financing structure of enterprises and the corporate governance. The contract theory of financing structure showed that the corporate financing structure is a contractual relationship in essence, not only the existence of this contract constitutes the basis of control right of the company, also reflected two different forms of governance between the shareholders and creditors. Stockholder's rights reflect the disposition of the corporate's control right through the arrangement of company's ownership, and debt also has an important role in corporate governance. Williamson (1988) claims that the debt and equity are different management structure.Based on this, this paper regard private enterprises as the Object, which analyses the Present situation of Chinese private enterprises' financing structure and corporate governance and in conjunction with the financing structure and corporate governance theory to optimize the structure of financing from the perspective of China's private enterprises to improve the company governance issues.There are five chapters in this paper:The first chapter is Introduction. Firstly, this paper analyses the background of the study and put forward the problems, and then introduces the framework and structure arrangements of the article.Chapter 2 is the Literature Review of financing structure and corporate governance which Includes the literature review of the financing structure theory and corporate governance, as well as the relationship between corporate governance and financing structure.Chapter 3 is about the international comparison of the financing structure and the company governs, which includes the international comparison of the company structure, the company govern as well as inspires and reference.Chapter 4 is about the present situation and problem of the financing structure and company governs among our country Private enterprise. This character consists of the present situation and problem, and the theoretical analysis on the financing structure and the company governs from the aspect of the stockholder's rights effect as well as the creditor's rights effect.Chapter 5 Introduce how to improve China's private enterprises financing structure choices and corporate governance. This part start with the optimization of the shareholder structure to discuss the equity management and talk about the effect of management from the perspective of debt financingChapter 6 is the conclusion, limitations and directions of future research, including the conclusion of the study, the limitations of the study and direction to which can continue to study in the future.