To Promote Corporate Governance Mechanism in State-Owned Enterprises by Optimizing their Capital Structure

Capital structure has an effect on the management achievements of enterprises as well as their governance structure and efficiency.The abnormal development of capital structure in state-owned enterprise contributes to the inefficient governance.Therefore,the fundamental means to solve this problem is to optimize the proportion of property right,enhance the debt management,and rationalize the equity structure.Starting with optimizing capital structure,we should explore an effective way to promote corporate governance mechanism.