Research On Evaluation Methods Of Human Capital In M&A

In the era of knowledge economy, as the human capital has more and more influence on firm'performance, the focus of M&A evaluation has already turned to the intangible assets of firms, especially the human capital. With the deepening of opening-up after entering WTO, the Chinese firms are facing more and more M&As, which put forward new claims for the valuation of human capital in M&A. Also, the value of human capital is always overlooked when the shareholders of the enterprise are changed, which causes lose of the important intangible capital. Thus, the evaluation of the human capital in M&A is becoming an impatient problem to be solved in the theoretical and practical field.Based on references about theories of human capital's evaluation in M&A, the article takes a deeper study about the theories and methods of the human capital's evaluation based on the M&A activity in China. The theory study begins with the basic concept of human capital and M&A, then analyses the value composition of human capital and the key effect of human capital in asset increment of the firms, and argue about the importance of human capital evaluation in M&A.The empirical study here begins with the conclusion about current research about the valuation of human capital. After pointing out the differences between financial valuation methods and non-financial methods, the article presents a valuation method of human capital in M&A---artificial neural network, which could make up the limitation of existed methods. According to the indicator system of human capital evaluation, by case study, the artificial neural network is proved to be a superior method for human capital evaluation.At last, the article talks about the integration strategies after M&A and points out that the value creation after the M&A mainly comes from the integration of human capital between the two firms.The article explores the theories and methods of human capital's valuation in M&A, and finally it can realize the aims of:firstly, to fill in the gap in valuation of human capital in M&A by this systematically studying; the second, to give significant reference for the human resource department; the third, the article hopes to arise people's attention and protection to this most valuable resource, and make people format the awareness of respecting the human capital.