Capital Structure Perspective, Corporate Governance Research

Through ten years' exploring and polishing, the remarkable achievement is acquired in the stock market;it makes great efforts for the further innovation of China's economy system, the development of market economy and the progress of social civilization. However, as a jumped-up market of short history, it also has many problems during its continuous development, of which the outstanding one is the defect of the governance structure of China's listed companies. Capital structure is a centralized reflection of shareholders' rights and obligations, which determines the managing structure of corporations, and has further influences on the governance efficiency. Therefore, studying for the problems of corporate governance based on capital structure has significant meaning for improving the market system.Based on the reformation of economy system and China's listed companies, the problems of the capital structure and governance effectiveness are discussed in this dissertation, through adopting methods of standardization analyzing, comparison analyzing and demonstration analyzing. Firstly, the relationship between capital structure and corporate governance, is discussed on theories. Secondly, the reasons of the unreasonable capital structure and low governance effectiveness are given from the three aspects, which are ownership structure, debt structure and law function. Meanwhile, some suggestions about how to optimize capital structure and improve governance efficiency are proposed. The suggestions include decreasing state-share to optimize ownership structure;strengthening the bankruptcy mechanism to improve financial structure of debt;perfecting the relative law system to protect the interests of middle-small investors. Finally, a corporate governance pattern of our own is proposed.In a word, the corporate governance based on capital structure is discussed here, which aims to give some constructive suggestions about the current problems of China's listed companies. It is necessary to note that the introduction of law function and protection of middle-small investors play an important role in this dissertation.