Study Of The Effect Of Capital Structure Of Corporate Governance In Listed Companies

The development of capital market in China has promoted the growing of socialism market-economy. But there are also some serious problems in Chinese capital market. For example: the behavior of managers of manipulating profit of the listed companies,unreasonable share structure,the controlling problems of internal managers,inefficient supervision of market. The thesis think ineffective corporate governance is the micro-base of orderly and efficiently running of modern market-economic system. Therefore exploring the corporate governance accord with the situation of China is an urgent affair. Capital structure is the base of corporate governance, which determined the collocation of company's controlling right and running manner of corporate governance to a great degree. As far as listed company, unreasonable capital structure is the main reason resulting in low efficiency of corporate governance. Consequently, it is of great significance to search after the approach to optimize corporate governance of the listed company starting from capital structure. It is of great theoretical and practical significance to study the relationship between capital structure and corporate governance in the domestic listed companies. As a special enterprise group, the listed companies have developed inevitably with "Chinese characteristic" for 14 years since the birth of stock market. The financial practice of the listed companies which always prefer stock issue to loans and bonds contradicts with the "pecking order theory". Domestic listed companies' crazy behaviors of raising money from the stock market often referred to as "Quanqian" (which means cheating the money out of the investors). In the meantime, the deficient corporate governance in the domestic listed companies is deteriorating. Then, what impact will the abnormal financial practice have on the listed companies, what is the relationship between the abnormal financial practice and the deficient corporate governance, what cause the deficient corporate governance and how to improve it in the domestic listed companies? It is the purpose and significance of this dissertation to try to answer these questions. On the basis of classic theories, this paper emphasizes the combination of theory and practice in the research into the objectives with enough facts and data by the mean of generalization, comparison and listing. The thesis consists of five chapters, systematically discusses the existing problems of listed company's capital structure and their impacts on corporate governance and then how to perfect the domestic listed company's corporate governance through optimizing capital structure in order to improve economic benefit. The first part mainly illustrates the characters of good corporate governance. In order to improve the corporate governance in the listed companies, the most important problem we should make clear is what corporate governance is perfect and what the characters of perfect corporate governance structure are. Thus, we can have the direction and standard of improve corporate governance. The author deems perfect corporate governance should work in coordination with capital structure. And it has six characters at least: balanced character,adapt to enterprise's development strategy,cost ,profit and risk match each other,suit with specific trade,have effective encouragement and restrain mechanism. In the second part, the author discusses the relationship of corporate governance and capital structure. In the first segment, the author analyzes the meaning and background of corporate governance. Then reviews the relevant theories of capital structure and discusses the relationship between capital structure and corporate governance. In the secondsegment, the author analyzes the governance function of capital structure in foreign economic theory. In the third segment, the author illustrates the practice of ""pecking order theory" with the result of empirical study in developed countries. In the third part, the author analyzes the present condi...