An Empirical Study into Corporate Equity Structure and Corporate Governance Structure

An empirical study into the relationship between equity structure and corporate governance structure centering on ownership and the extent of centralization produces the conclusion: in contrast with either highly centralized or highly diversified equity ownership, those of moderate controlling with balancing forces from other stockholder, especially when the biggest holder acting as the corporate, are favorable for the functioning of the corporate governance mechanism, both internally and externally. It may serve as the target model for optimizing the equity structures of China's listed corporations and in turn perfecting their corporate governance.