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The Research On Human Capital Finance And Human Capital Financial Control

Posted on:2011-12-21Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y ZhuFull Text:PDF
GTID:1119360308468947Subject:Accounting
Abstract/Summary:PDF Full Text Request
Human capital is playing more and more important role in the value of the enterprise and economic growth. Human capital is gradually replacing financial capital and becoming the most important and strategic capital in the enterprise. It is also becoming the key to the achievement of the enterprise goals. Comparing with traditional financial capital,human capital has its own characteristics. Human capital property rights not only has the same similar attributes as general property rights, it also has its own unique attributes. Human finance scope cannot be avoided because of human capital depending on financial capital.Based on "Business wealth maximization" financial goal belonging to business goal,it is emergent to reseach human capital in terms of finance to improve business efficiency and realize business goal. Business controlling human capital first reflects on its controlling concrete morphology and concret activities.These controlling goals make human capital amount match its structure or to satisfy its goals,plans or orther requirements.While in terms of value,human capital has different value in quality and capability which is comprehensively "scarcity value".Business controlling human capital's value and its changeable procedure is called financial control.Owing to the following factors, human capital needs financial control:its economic value is changeable; human capital strategy implementation needs financial control;human capital concret control needs reference information given by financial control;business financial control should includes human capital financial control.In order to reduce transaction costs such as negotiation cost and supervision cost caused by instability of human capital, it is necessarily based on human capital financial activities and relations to build a financial control framework for human capital. All of this is stemmed from comprehensiveness of financial value management. The financial control framework can internalize human capital externalities and realize "win-win" goal of "duality" property rights. Therefore, it is greatly meaningful to start discussion from the perspective of financial control.The article is not only based on Theory of Property Right from economics,Theory of Finance Right and Theory of Financial Governance from systematic finance but also draws fundamental theory of traditional finance and the latest outcome of modern finance.It develops discussion on human capital raising, operating, investing, incentive and restraint in terms of financial activities and financial relations and brings up the framework of human capital finance and control which includes fundamental meaning, goals and fundamental content. Its fundamental meaning can be understood from the technical level (financial activities level) and systematic level(financial relations level). Its goals include direct goals and ultimate goals. Its fundamental content includes human capital raising, operating, investing, incentive and restraint. Human capital raising includes external raising and its control and internal raising and its control.As the most important and advanced raising method, human capital sharing affects financial management and financial governance.Human capital investment is a kind of investing behavior which will increase human capital value. Human capital investing benefit is the human capital value increment. Human capital investment financial control focuses not only in human capital benefit and its measurement but also in human capital risk and its prevention.That human capital can only be motivated not squeezed makes human capital finance incentive and restraint very important. Business finance incentive and restraint should be understood from two aspects:value level (income distribution) and system level (finance rights allocation).The article builds human capital structure diagram according to the degree of comprehensive complexity and strategic managing capability of human capital. This diagram shows four kinds of human capital who have different growth pathes and rules. Therefore, these four need different financial incentive and restraint methods. Certainly, human capital finance and its control can not be developed without relative information support.Hence, in this paper, we try to build an index system of human capital financial control on the basis of an improved accounting system which lays an information foundation for strengthening operation of human capital finance and its control.The article develops an analysis on human capital finance and its control in terms of value and right and brings forth the following new ideas:(1)It develops a fundamental theory of human capital finance and its control and builds up a framework of human capital finance and its control.It greatly enriches the content of finance research and has an important meaning for completing modern finance theory system.(2)It discusses human capital raising cost and human capital investing benefit measurement in terms of value(technique or financial activities) which provides a quantity base for the measurement and control of human capital investing benefit.(3)The article builds up a human capital structure diagram and develps a new idea of classification control which has an important practical meaning for improving human capital value and realizing business value maximization.(4)It tries to build an index system of human capital financial control on the basis of an improved accounting system which lays an information foundation for strengthening operation of human capital finance and its control.
Keywords/Search Tags:Human Capital, Human Capital Finance, Human Capital Financial Control, Financial Activities, Financial Relations
PDF Full Text Request
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