Research On The Impact Of Corporate Governance Structure On The Cost Of Equity Capital

In recent years, many enterprises at home and abroad due to the impact of the economic crisis, Its survival and development are facing severe challenges,mainly for the financing ability of the enterprise,risk response ability decreased, caused the people to establish the thinking on how to perfect the corporate governance and prompted people to research on corporate governance and cost of equity capital relationship to lower the cost of equity capital to improve the enterprise existing problems.The corporate governance problems in China started late, mainly in the equity of the highly centralized, proportion of state-owned shares and non tradable shares proportion, the majority of the situation, "dominance" phenomenon is very serious, the board of directors and managers of rights is not clear, high financing costs, financing amount is too small, low efficiency of corporate governance, in market competition difficult to maintain competitive advantage, is not conducive to enterprise development in the new period of growth.From ancient times, to a country, small to a collective governance problem is very important,good governance is a prerequisite for the effective functioning of the state or the collective health, efficient corporate governance can effective configuration of resource scarcity, restrain the enterprise operators, encourage managers to struggle for the enterprise all stakeholders to maximize the benefits,can reduce the rate of return required by investors that reduced the cost of equity capital of enterprises. Therefore,studying the corporate governance especially the internal governance structure is quite necessary and very meaningful.The previous studies in terms of corporate governance in our country are moreconcentrated on the influence of the corporate governance of the enterprise value,although there are some scholars of corporate governance and the cost of equity capital has been studied, but there is no consensus on the specific impact between them.Due to the model is established for the different variable selection is different, the difference between the study sample and industry, the starting point and consider the difference of perspective. The conclusions are widely divergent and in the real estate industry also few scholars research,Therefore, this paper tries to this for perfect, after reading lots of literatures and related data and summarize on the basis of previous studies, focus on the internal governance structure of corporate governance,defining the relevant concepts of the research service below, choose the capital asset pricing model to measure a result of variable cost of equity capital,to the real estate listed companies as the object of study,according to the real estate industry present situation and a large number of literature from the three aspects of corporate governance and the ownership structure,characteristics of board of directors, incentive mechanism study of its impact on the cost of equity capital, finally a comprehensive survey of the three aspects of the overall cost of equity capital influence.The independent variables were selected, follow the traditional more representative variables, in the board of directors will feature introduced in modern enterprises pay more and more attention and widespread special committees, including: audit committee, strategy and development committee,nomination committee, remuneration committee, making results more comprehensive,rigorous and has practical significance, in order to make reasonable and effective decision-making for enterprise managers and investors, improve the level of corporate governance, so as to provide advice to reduce the cost of equity capital,the research and improvement of the real estate industry corporate governance structure, in order to improve the impact of corporate governance structure on the cost of equity capital.