On the Study of Capital Structure and Governance of Listed Companies

Abstract

Corporate capital structure is a major factor which influences corporate governance structure. At present, our country’s enterprise reform is developing more deeply, weather the capital structure is reasonable will have a directly impact on the enterprise’s long-term development in the market. Therefore, we should optimize the capital structure without any delay. This paper introduces the concept of capital structure first, and then studies its meaning and the main factors that affect the capital structure of listed companies in China. Finally we combined with practical case to analyze the capital structure’s impacts on corporate performances and put forward some specific optimization tips.