On the Governance Functions of Corporate Social Capital

Traditional studies on social capital mainly stay at macro level. This paper, from the micro perspective, redefined corporate social capital (CSC), and analyzed its impact on capital structure and governance functions. On this basis, the paper built a preliminary framework to analyze the functions of corporate governance. We argue that the owners of social capital sharing the rights of corporate control, corporate management and corporate residuals with other capital owners can optimize corporate capital structure and enhance the functions of corporate governance.