Discussion Of The Impact Of Capital Market On Corporate Governance Of Listed Companies

Corporate governance is very significant for perfecting the market system of a country. Because of the difference in polity, economy, culture and track of company system, we can find out a model for corporate governance which is suitable for any countries. The transit from planned economy to market economy complicates the corporate governance revolution of listed companies. Chinese revolution of corporate governance is very different from the western developed countries and other socialistic countries. So, if we want to successfully resolve the corporate governance problem of China's listed companies, we must base ourselves on the ongoing transformation of China's economy in combination with other important features characteristic of China's capital market.Capital market is one of the most important environments of corporate governance. Based on the western corporate governance theory and the situation of Chinese capital market, this essay studies in a comparatively thorough way corporate governance of China's listed companies. In light of the different relationships between investors and fund-raisers, capital market can be divided into two parts: Equity market and Credit market. This essay studies the governance functions of China's capital market by governance of Equity market and governance of Credit market. Of course, compared with market economy countries which have mature capital markets, it is not perfect in that there still exist some problems in the capital market mechanism of corporate governance in China. But there are other hills whose stones are good for working jade. Drawing on foreign successful experience for reference, this essay puts forward some constructive suggestions which are hoped to be of theoretical value on the advancement of the research of the mechanism of corporate governance in the capital market of China.