Financing decision on the impact of corporate governance in China

Reasonable and effective corporate governance is assurance that the company keeps on to stabilize a development. Corporate governance plays an important role in the modern corporate system. The core of corporate governance is how to coordinate the interests of all aspects. Financing decision is an important component of corporate governance, its influence can not be ignored. This paper discuss the financing decision on the impact of corporate governance, analysis the current problems about financing decision in China and put forward some suggestions. This paper suggest that we should reform China´s financial system, develop the bond market and bank lending market, strengthen the monitoring mechanism of bank and keep the company´s liability structure reasonable.