Study On Impact Of Corporate Financing Structure On Governance Structure

Different financing mode decides different financing structure, while financing structure effects corporate governance structure. There are two kinds of financing modes: equity financing and debt financing. The two controlling rights have different influences on corporate governance structure. Through the multi-agency relations, corporate governance structure forms a organization system to mutually condition, reduce agency costs and improve the efficiency of decision-making in the aspects of encouragement and supervision, coordinate right-duty-benefit, information exchanges. The core of corporate governance is to distribute and integrate the capital ownership, the controlling right and the residual claim power effectively. In this process, the control right plays a decisive role, while the financing structure is decisive factor for controlling right.There are two main models of corporate governance: a market-oriented corporate governance structure (British and American modle) and network-oriented corporate governance structure (Japanese and German model). The establishment and reform of China's corporate governance structure was based on the study and imitation of these two models, but neglected the financing mode, financing structure and the corresponding market environment behind these two corporate governance models. Only by considering the development of China's capitai market, by setting up a corresponding corporate governance structure rights according to the financing mode, financing structure, distribution of the controlling rights, can we establish a effective corporate governance.