Enterprise Financing Structure and Administration

The article discusses the relationship between enterprise administration and the ratio that exterior financing structure(direct and indirect),i.e stock ownership financing and debt financing (including bonds and loans obtained from banks or other financial organizations)occupy in regard to the total capitals of the enterprise.The article presents a hypothesis:enterprise financing structure determines the administration of enterprise,while the administration of enterprise will effect the choice of financing structure,and so the planning of enterprise financing structure is an important factor to improve the working efficiency of joint-stock system,and plays a key role in the success of an enterprise.