2004Economic SurveyRequires access

The Corporate Governance and Financial Structure

Wang Su-rong

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Abstract

The model of “common governance” is suitable for China's enterprises. Under such model, the target of corporate finance is to maximize the enterprise's value. The weighted average costs of funds must be cut down to minimum to realize the best financial structure. Hence, the closely relations between corporate governance and finance structure will jointly decide the efficiency of operation.

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The model of “common governance” is suitable for China's enterprises. Under such model, the target of corporate finance is to maximize the enterprise's value. The weighted average costs of funds must be cut down to minimum to realize the best financial structure. Hence, the closely relations between corporate governance and finance structure will jointly decide the efficiency of operation.

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Available abstract

The model of “common governance” is suitable for China's enterprises. Under such model, the target of corporate finance is to maximize the enterprise's value. The weighted average costs of funds must be cut down to minimum to realize the best financial structure. Hence, the closely relations between corporate governance and finance structure will jointly decide the efficiency of operation.

Key concepts: Corporate governance, Business, Corporate finance, Finance, Financial structure, China, Value (mathematics), Accounting

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