Effect Of Private Listed Companies In The Financing Structure Of Governance

This paper analyses corporate governance from the perspective of financing structure. We believe financing structure affects corporate governance through at least three main channels: firstly," incentive function", financing structure mediates the conflict between the client and the deputy by affecting managers behavior; secondly, "control function", financing structure affects the allocating and looting of the control rights; thirdly, "signal function", financing structure sends the external investors a signal of the company's performance.Through the statistical description and test of the financing behavior and equity structure of 112 individual-owned listed companies up to July 2002, we prove that the financing behavior of the individual-owned listed companies is not rational and they have relatively high level of current liability. Individual-owned listed companies have obvious preference of current liability, then equity financing, and last long-term liability. The utilizing efficiency of the external equity funds is low.We also prove that the equity structure and performance of individual-owned listed companies are better than that of state-controlled listed companies and the emergence of individual-owned listed companies diversified the ownership of the stock market, enriched its connotation, promoted the optimization of allocation and enhanced the utilizing efficiency of resources, but there are a lot of problems in the corporate governance of individual-owned listed companies and the governance is not efficient.We believe that equity structure of the security market is the institutional factor which affects the corporate governance effect of individual-owned listed companies. Other factors include the market of corporate bond and control rights being undeveloped and institutional investors and bank having no power to participate in corporate governance, etc. Targeting on these problems, policies and suggestions are proposed at the end of this paper.The dissertation is divided into five parts:The first part: IntroductionThe second part: A theoretical analysis of the governance effect of financing structureThe third part: Governance effect of financing structure in individual-owned listed companiesThe fourth part: The cause of governance effect of financing structure in individual-owned listed companiesThe fifth part: Policies and suggestions...