A Study On Capital Structure Of Listed Companies Based On Corporate Governance In China

Capital structure and corporate governance are the important areas that represent salient part of financial management and corporate governannce research. As one of the factors that affect the capital structure, corporate governance how to influence the capital structure is the focus of the research in this paper. Corporate governance mainly includes three aspects, ownership structure is the core of corporate governance, board of directors is the decision-making mechanism of corporate governance, executive incentive is the incentive mechanism of corporate governance. Accordingly, Ownership structure introduces the ownership concentration and share ownership’s equity balance, and studies its relationship with capital structure; Basing on the proportion of independent directors, this paper studies it how to influence capital structure; Focusing on Executive incentive, the paper also studies the managers shareholding’impact on the capital structure.Our country is in economic transition period, listed companies showed a lot of problems, such as unreasonable capital structure and low corporate governance efficiency, etc., embodied in“a dominant”, the high debt ratio. Corporate governance is one of the important factors influencing the capital structure, because enterprise’s financing decision is largely determined by the corporate governance mechanism. Effective corporate governance efficiency is the key to ensure enterprise sustainable development. At present, the internal and external governance environment is not perfect, which affects the sustainable development of the company. Therefore, from the perspective of corporate governance factors, we study the importance of the corporate governance of listed companies, especially its relationship with capital structure, these are very important. Although the research on the relationship between them has some theoretical and empirical results, but has not yet formed a unified conclusion and theory system. On the basis of the original literature, this paper not only studies that corporate governance influences the capital debt ratio, and also consider the relationship between corporate governance and debt maturity structure.The characteristics and innovation of this paper mainly displays in:(1) through analyze the impact of the ownership structure, executive incentive, governance of the board of directors on capital structure, determine the factors of corporate governance influencing the capital structure;(2) based on the analysis of the relationship between capital structure and corporate governance in the major shareholder, equity checks and balances, the executive incentive, governance of the board of directors, build up the model of capital structure;(3) use AMOS to analyze1870sample data in Chinese listed companies from2007to2011, and then obtain the empirical resultes based on corporate governance factors on capital structure optimization model. In this paper, the study not only for listed companies in China provides a set of operational optimization approach for capital structure basing on governance factors, and puts forward the implementation of the strategy for capital structure of listed companies...