Corporate Governance,Governance Environment and Capital Structure

Corporate governance structure is the framework that regulates the allocation of rights and obligations of shareholders,the Board and senior management,which determines the structure of corporate financing. By employing the unbalanced panel data of all A-shares listed companies from 2004 to 2007,this research paper investigates the relationship between corporate governance and capital structure in China's institutional environment. It finds that corporate governance exerts significant influence on capital structure in China. This finding enriches the theory of corporate financing and is helpful for improving capital structure and corporate governance institution of Chinese companies.