FINANCIAL STRUCTURE AND CORPORATE GOVERNING STRUCTURE: A RESEARCH BASED ON THE CONTRACT THEORY

Different financial structures and corporate governing mechanisms result from different contract relationships of investments and thereby different capital structures. Optimizing financial structures can improve corporate governing structures and performances. So, we should strengthen the roles of creditors of banks, develop capital markets to improve governing mechanisms, realize concord effects of governing, and realizing the interactions between multiplying financial agents and optimizing the principal-governing structures.