Corporate Internal Governance Mechanisms and the Cost of Equity Financing:an Analysis on the Influencing Factors under the Differences of Equity Property

Abstract

This empirical study found that there is a significant impact between several corporate internal governance mechanisms,such as equity balance,the proportion of independent directors and the transparency of information and the cost of equity financing for listed companies in China,while for state-owned listed companies,the separation of chairman and CEO and board size are significant factors.Because of the awakening of self-protection of investors,more attention began to be paid to restrict the behavior of large shareholders through the shareholder governance mechanisms;Meanwhile,investors tend to use the means of decentralization,taking into account the actual situation in China.