Enterprise Human Capital Investment Risk Controlling Research

With more serious risks and global development, study on enterprise human capital investment risk is of great theoretical significance and very urgent and practical significance in the new century. The domestic academic researches focus on the process control, including forecast and decision-making risk, recruiting and training risk, allocation risk. But the integrated management of the investment risk, such as the agent risk, is relatively weak. Based on human capital theory, investment theory, risk management, fair theory, as well as other relevant economic theories and management theories, this paper mainly discusses the controlling of agency risk, hoping to provide specific and valuable guidance to standardize enterprise human capital investment controlling.The paper is divided into 5 chapters:Chapter 1 introduces the research background, and foreign research profile and research purposes significance. Background includes domestic and international background. Foreign study of human capital investment risk focuses on the human capital risks, the sources of risk and the prevention of risk, and so on. Domestic research concentrates on the meaning of human capital investment risk, the cause of human capital investment risk, classification and risk control measures and other aspects of human capital investment risk, such as agency risk.Chapter 2 researches the relative concept of human capital investment risk and the classification. Then proposes the focus of this paper: human capital investment agency risk.Chapter 3 studies the arising of agency risk, characteristics of agency risk and related theories. The paper hold the opinion that self-sufficient is the most fundamental cause of human capital investment agency risk. The logic basic nature of agency risk is the self-analysis. The effective of controlling depends on the extent of the self-guided nature and using and the degree of coherence between the interests of clients and agents. Other contracts, such as incomplete,asymmetric information and uncertain environment, acting as that agency risk will be more vulnerable or more likely to happen, are only external conditions but certainly not its underlying causes. The characteristics of agency risk are widespread, uncertain and inherent.The related theories about human capital investment agency risk include the principal-agent theory, game theory, and equity theory. Principal-agent theory mainly studies the agency relationship between the client and the agent. In the agency relationship, clients and agents are to achieve their goal of effectiveness. Therefore, if we need the agent to increase their level of investment or effort, we must begin with wages, changes in market demand and external supervision restraints to find a solution. If the client is expected to pay the agent can not meet the standard, the government can not rely on the market, clients can not rely on agents to intensify their own efforts to constrain supervisory level, and then it is bound to happening human capital investment risks. Incentive pay gap greater degree of sound and effective market worse, the more ineffective oversight and restraint, the human capital investment risk is greater. Therefore, in order to control the human capital investment agency risk, we must give agents corresponding motivation and constraint.Game theory is a methodology. Research is a direct interaction between the main decision-making when the balance of decision-making and policy-making. Given the payment function and strategy, each side of game has made its choice - the optimal strategies to maximize personal benefits of that self-expression. For the self-control to guide agents, with the corresponding incentive and restraint, human capital and entrepreneurs need to establish a market mechanism, the mechanism of the capital market to take over full competition in the domestic market. These infinitely repeated games will be able to create such an environment in which the two sides cooperate to control human capital investment risk.Equity theories, as an agent of total self-love, and expect to be treated fairly. Not only compare with the outcome or reward themselves with others, but will also compare input-output ratio with other related personnel. If the ratio equal to the others, the condition is fair, instead, is unfair. Then the agent will experience the nervous to change this result. It will cause risk.Chapter 4 describes the controlling of human capital investment agency risk, through a fair degree of measurement and adjustment, achieve the objective of risk control. We need assess the agents'inputs and reward and then chose a reference for comparison. This paper chooses performance evaluation instead of inputs for the measurement and introduces the evaluation criteria and the selection of specific measurement and quantitative methods. For the measurement of reward, it uses the direct wage. Finally, this chapter introduces how to control risk with equity adjustment.Chapter 5 is a case study. The paper explains how to make an equity adjustment for risk controlling.The creativities of this paper are that it uses equity theory to analyze human capital investment agency risk. Meanwhile it use fuzzy math to realize to compare different index with each other. Therefore we can measure the level of fair and adjust it to lessen the human capital investment agency risk.