Study On Intangible Human Capital

According to the traditional theory of human capital, the essential difference between human capital and material capital is the inseparability of human capital from its owner. However, in the real economy exists a sort of human capital defined in the text as intangible human capita(IHC) which is detachable from its owner. It is made of dimensions of popularity and credibility and popularity functionally matters more than credibility not only because it's much more difficult to fathom credibility but also because popularity is the precondition of credibility. Having intangible human capital only means someone's popularity and credibility reach to a certain degree called threshold value which features"When the river rises, the boat floats high."Comparing with intangible human capital , traditional human capital is counter-defined as tangible human capital . Partial-detachability from its owner is foremost substantial to distinguish intangible human capital from tangible human capital and deductive to bring it about some other characteristics as followed :1. Value development of intangible human capital probably depends on the users'endeavor rather than owners'endeavor ; 2. Value development of intangible human capital connects closely with owners own intangible human capital and users'popularity as well , on the general basis of mutual stimulation between owners and users ; 3. Intangible human capital is partial mortgageable; 4. Intangible human capital is affiliated with, however, promotive to tangible human capital. They are interactive positively ; 5. Intangible human capital presents more comparatively homogeneity.After definition and feature analysis, this article analyzed the formation mechanism and value creation process of intangible human capital. Popularity formation , once spread in word-of-mouth in traditional society , relies primarily upon modern media technology in contemporary society and closely relates to someone's profession trait , individual achievement , public concern and etc. Popularity has Forgetting Effect and Multiplying Effect (or Diffusion Effect), both of which affect popularity in an opposite direction thus jointly determine its up-and-down. Based on repeating game, credibility is set up and determined by communication scope and association degree and influenced by information spread speed, legal system, property right structure and etc. Intangible human capital is able to create value because it could reduce transaction cost under the effect of credibility on the one hand and produce Advertising Effect under the effect of popularity on the other hand. It's not difficult to understand why enterprises use intangible human capital in high price .This article also used the conception of intangible human capital to analyze the popular issue of enterprise ownership arrangement in recent years. According to mainstream enterprise theories, capital employ labor is more reasonable than labor employ capital because under the condition of asymmetric information and incomplete contract, the inseparability of human capital from its owner disables the mortgage function owned by material capital though and produces opportunistic behavior such as shirking and free ride. However, the aforesaid precondition of deduction is changed after introducing conception of intangible human capital of partial separable and mortgegeable. Analyzing with the respective of satisfied profit in state-contingent ownership theory, capital employ labor is possible and able to explain why some celebrities could possess enterprises'stock without investing material capital or working.Theories must be able to interpret reality and be verified. After using statistics of listed companies and studying the relationship between CEOs'compensation and intangible human capital with , this article found out their positive co-relationship and verified the judgment of a threshold value in intangible human capital . The measurement of intangible human capital adopted the quantity of relative webpage from Google as measuring value.