| Capital structure demonstrates the different sources of corporation funding, but essentially it discloses the interdependent relationship between different ownerships underneath different types of funding. Basically, the capital structure represents the profits distribution pattern between different groups. Different corporation governing problems are formed by different combination style of stock ownership and creditor's right. A rational capital structure is important to reduce agent cost, improve corporation governing efficiency and increase corporation profits. Stock ownership and creditor's right represent two different corporation governing methods of investors. Creditor's right can be used to supervise and choose the investors and their projects, confine the operation misconduct of corporation managers. Stock ownerships can be used to influence the corporation governing efficiency through such methods as inspiration mechanism, supervision mechanism, merging and purchasing, and competition on consigned voting right. The capital structures of marketed companies in China are not optimized. The main problems are low debts' ratio, low ratio of bond financing, unreasonable debt's structure, high ratio of state-owned stock. The significance of studying the capital structure of China's marketed corporations is not only to point out the problems but also to improve the healthy development ofthose corporations and complement their governing mechanism.The author explains the historical origin cause of formation of enterprise's capital structure current situation of our country in terms of development of the financing system of our country, analyses the influence of enterprises' capital structure on the corporate governance in our country then, draws the conclusion that we must optimize the capital structure if we want to improve the current situation of our country's corporate governance, concrete countermeasure and suggestion of optimizing the capital structure. |
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