Correlation Study Of The Financing Structure And Corporate Governance Structure

The present companies in our country have many problems in corporate governance structure, such as too high rate of national corporate stock, too high of agency costs, too low of agency efficiency, corporate owners couldn't control managers because they couldn't gain enough inspiration and right, corporate governance structure isn't balance, insiders controlling problem is very serious, companies couldn't form effective managers selection mechanism, and so on. How to solve these problems has become required solving problem which can perfect corporate governance structure and promote corporate development.The paper will study corporate governance structure from financing aspect. It has six parts. Part one is expounding the study condition both interior and overseas. Western economists studied finance from MM model, then many economists studied finance how to effect corporate governance from a few of aspects. It produced many theories such as agency costs theory, asymmetric information theory and product-market theory. Part two is the connection between financing and corporate governance. Conflict of interest between corporate insiders and outside investors is made by the incomplete of financing contract. So it is necessary to ensure investors' interest and control managers. On this aspect, financing structure embodies one arrangement of controlling right, the selection of financing mode reflects the selection of controlling right. Part three is the problems which exist in corporate governance and financing mode. The unreasonable of financing structure embodies in unbalance of security market, the greatly difference between equity financing and debt financing, the difference trend of financing structure between our companies in our country and overseas companies. The problem of governance structure embodies three aspects. First, high equity concentration makes governance mechanism has no effect on companies. Second corporate governance structure is unbalance and insiders controlling is very serious. Part fourexpounds the effect of equity financing and debt financing to corporate governance structure from some aspects. At the same time, it analyzes two financing mode how to affect managers inspiration, effective supervisor, competition of agency right and selection of bankrupt liquidation. Part five uses a sample of some companies in shanghai stock exchange to study relation of financing mode and corporate governance. The last part puts forward some propose which can perfect corporate governance structure by above conclusions.The paper study of financing structure and corporate governance structure bases on the forefathers study, the main creation embodies two aspects. First, the paper study corporate governance from financing structure, the forefathers' study are almost from ownership structure, stockholders structure, capital structure, and so on. Second, the paper uses multiple regression mode to analyze financing structure how to affect corporate governance structure. The analysis of the paper may be not perfect, but it is one good attempt on earth.