Correlation study between capital structure, stock equity structure, debt structure and corporation governance

Abstract

Using data from listed companies, this study analyzes the respective relevance between listed companies' capital structure, stock equity structure, debt structure and corporation governance in China, with the method of DEA (Data Envelopment Analysis) and T-test. The result shows, for the listed companies of China, relation between debt financing ratio and the governance is not significant, while that between the degree of equity concentration, immobility of share certificate and the governance is minus, and this is contrast with the theoretic conclusion that the relatively concentrative stock equity structure is helpful to corporation governance. At last, this passage concludes that for the listed companies of China, corporate shares have some positive effect on corporation governance, while debt financing can't restrict and supervise it as required theoretically.