Capital Structure Optimization And Its Impact On Corporate Governance Performance

The capital structure is the key problem in the enterprise theory and the practice of corporate governance. This paper breaks the traditional capital structure system and immit the concept of managing element capital at the basis of summary which explains the traditional capital structure and the corporate governance. This paper brings this concept into the capital structural theory system, proposed that the capital structure not only includes the financial capital such as the ownership capital and the debt capital, but also includes the managing element capital, So the theory system of capital structure can be perfected. Next this paper analyzes the reason why we bring the managing element capital into the capital structural theory system from different angles, such as the characteristic and function of managing element capital, the division of enterprise ownership, the income distribution system, the enterprise capital structure and the practice of corporate governance. From the angle of incentive mechanism and the function of internal and exterior restraint mechanism, the paper elaborates the managing element capital especially the human capital of the manager can bring important influence on the performance of corporate governance. The research obtains that many measures can effectively enhance the performance of corporate governance. We can stimulate managers from the incentive of matter and spirit, strengthen the supervision and control of the board of directors and board of supervisors and perfect the market of outside take over and the professional manager market. Then this paper analyzes the existing state of our country's listed company and the influence on the performance of corporate governance. In our country's listed company, stockholder's rights are highly concentrated on the state-owned shares which result in state-owned shares alone big and the proportion of circulating shares somewhat low. Besides, the debt structure is unreasonable. The bankrupt mechanism and the drive and restraint mechanism is not perfect as well. Above factors cause the performance of the corporate governance is low. Finally, this paper introduces the existing state of managing element capital and the impact on the performance of corporate governance. So the paper proposes suggestions and measures which can not only optimize managing element capital structure and capital structure, but also enhance the performance of corporate governance.