Capital Structure Of Listed Companies On Corporate Governance Structure Research

The paper analyses the functions and its mechanisms that the capital structure has on the corporation governing structure under the condition of the imperfect of financial contracts. As a combo of contracts, there are costs of agent between consigners and agents in modern enterprises, also between stockholders and creditors, exteriors and interiors, larger stockholders and smaller stockholders, therefore, the core task of corporation governing is to minimize these agent costs mentioned above.The creditors and the stockholders contest for the controlling rights determining the occupation of the capital flow of the corporation income, therefore, the correspondence between the rights for controlling the corporation and the rights for demanding residuals will reduce the agent costs. There are conflicts between the larger and smaller stockholders; a good governing structure can allocate the controlling rights in a more rational way which do benefits to the competition of controlling rights and lead to reducing the agent costs.According to owning of the controlling rights for the corporation, the governing structure can be classifying into market-controlling and relationship-oriented models. The paper draws a conclusion that the irrational capital structure of the corporations admitted to the capital market is the main cause of the low efficiency of governing structure in these corporations with two exhibitions, i.e. the state-owned stock occupying most share alone and all these stock classifying into circulating stock and non-circulatjng ones which occupies more than fifty percentage, which cause the failure to optimize the allocation of the controlling rights, thus keeps the agent costs at a high level.In the end, we draw the conclusion that we must try to optimize the capital structure to improve the governing structure of a corporation through the measures mainly as circulating all the stocks, optimizing the management systems of the state-owned stocks, cultivating and developing institutional investors, putting forward the scheme of mangers' holding stocks, allowing foreign capital to hold the stocks and speeding up the development of bond market.