Capital Structure And Corporate Governance: Based On The Analysis Of Institutional Economics

From the angle of institutional economics, the author analyses vertically and horizontally the history and status quo of capital structure and corporate governance in institutional change at home and abroad, integrating capital structure with corporate governance. Meanwhile, applying inductive and deductive methods, the author observes and studies the institutional change in capital structure and corporate governance on the basis of historical development of the corporate institution. Firstly, the author reviews the historical development in capital structure and the formation of the modes of corporate governance and then concludes that ownership change becomes the core concept in capital structure and corporate governance, the essence of the change of capital structure and corporate governance is that the development of productive forces leads to the reform of mode of production and the relationship between capital structure and corporate governance is so close. Secondly, the author analyses comparatively the stock-ownership- oriented mode (British and American mode) and creditor's right-oriented mode (Germany and Japanese mode) of corporate governance and studies the status quo and tendency of development capital structure and corporate governance; what's more, the author concludes that the mixing together and convergence become so obvious in the institutional change of capital structure and corporate governance. The game among governments, enterprises and other parties of interests leads to convergence in corporate governance; in addition, the mixing together and convergence are restrained by path dependence. Lastly, taking the listed companies in China for example, the author analyzes the status quo the capital structure and corporate governance and advises how to optimize the capital structure and perfect corporate governance on the basis of the economic and social characteristics during the conversion period of Chinese institution.