| Summary: | 碩士 === 國立中央大學 === 企業管理研究所 === 99 === Considering the differences of corporate governance environment between China and other countries and Chinese authorities have launched Split Share Structure Reform program in 2005. This study investigates the relationship between corporate governance and cost of equity capital, using China''s listed corporations from 1996 to 2009 as sample observations. We use PLS(Panel Least Squares) and OLS(Ordinary Least Squares) regressions to examine our hypotheses and the results are as follows：First, the cost of equity capital of firms that participate in Split Share Structure Reform decreases insignificantly than their counterparts. Second, before Split Share Structure Reform, cross-listed firms have significantly lower cost of equity capital than non-cross-listed firms in China, and the causes come from lower proportion of shares of second large shareholder and higher proportion of independent board members. Finally, cross-listed firms who participate in Split Share Structure Reform have significantly higher cost of equity capital than those who do not participate in Split Share Structure Reform. Our research has implications for regulators who want to improve corporate governance and reduce firm''s cost of equity capital.
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