The Empirical Study On The Relationship Between The Capital Structure And The Financial Governance Efficiency Of The Listed Corporations In China

The capital structure is very important both in corporate governance and in financialgovernance theory，which reflects the rights and obligations should be fulfilled of eachstakeholder. And its influence on the construction of corporate governance structure is notallow to be belittle.Because the corporate governance and financial crossing and penetrationin the governance process,the theory of Financial governance come along and become thecore content of corporate governance.In recent years,people have began to pay attention to theproblem of corporate governance in theory and practice, but the time spent in researching thisproblem is still short in China, the system of financial governance theory has not formedcompletely. If there is not in-depth study of the efficiency of financial governance, Financialgovernance theory could not become mature.This paper is based on the analysis of related theory of the capital structure and financialgovernance efficiency, and summarized the methods and achievement of previousresearch,which laid a solid theoretical foundation for the empirical research.This papermainly studies the relationship between capital structure and financial governanceefficiency,and the capital structure is further divided into three aspects: the capital structurein narrow sense, equity structure and debt structure.Then put forward the hypothesis andempirical analysis.The empirical research choose listing Corporation of Shanghai andShenzhen A shares from2010to2012as samples, select the appropriate variables on capitalstructure and financial governance efficiency, construct regression model, and then analysisby using multiple linear regression.Study finds: the binding effect of debts to the enterprise isnot good; the ownership concentration is positively related to the financial governanceefficiency, equity balance degree is negatively related; relatively speaking, the efficiency offinancial governance of state-owned listing Corporation is higher; the incentivemeasures,managerial ownership,used properly will improve the financial governanceefficiency of enterprises; the short-term debt tendency is obvious, and there is a positiveimpact on enterprise financial governance efficiency; the bank loan rate was negativelycorrelated with the financial governance efficiency, but the commercial credit rate have apositive effect on the financial governance efficiency. According to the empirical analysis, this paper put forward the correspondingcountermeasures and suggestions to improve the financial governance efficiency from thelong-term capital structure, equity structure and debt structure three aspects.