Research On AH Shares Listed Corporate Governing Performance Under Capital Structure Constraint

With the waning of the impact of the financial crisis, China’s economic conditionscontinue to improve, capital market activity increases, double capital financing raises,the number of AH shares listed companies increases rapidly, and their sustainabledevelopment is concerned. AH-share listed companies in China as a new phenomenon,there are some defects and shortcomings with its capital structure and corporategovernance, which brings greater challenges in the double capital markets. Corporategovernance performance as the basis and prerequisite for sustainable development oflisted companies, bound by the degree of perfection of the capital structure andcorporate governance, the result is not satisfactory. To take full advantage of theopportunities brought about by the double capital markets, and promote morefavorable orderly development of the AH shares listed companies in China, this papertheoretical analysis and empirical research of its corporate governance performanceunder capital structure constraints.This paper analyses corporate governance effect of equity and debt in capitalstructure based on the theory of capital structure and corporate governance, and keepsabreast of the AH shares dual-listed companies development, capital structure andcorporate governance status quo by further. Because of the double share capitalstructure, AH shares dual-listed companies also face the problem of corporategovernance, especially in the legal and regulatory environment, setting up theincentive and supervision mechanism becomes more complex. With the assumptions,the empirical analysis constructing multiple linear regression model of governanceperformance of the AH-share listed companies in the capital constraints of AH sharesdual-listed company is in a special capital environment, its capital structure andcorporate governance on corporate governance performance has a positive correlationrelations, especially asset-liability ratio, board structure, the structure of Supervisors’Board and executive compensation incentives play a significant role in promoting theimprovement of corporate governance performance. Finally, according to the resultsof empirical research, put forward constructive proposals for the future of China AHshares dual-listed company’s capital structure, corporate governance optimization.