Research On The Effective Mechanism Of Human Capital On Firm Performance

With the development of science & technology and the arrival of knowledge economy era, the status and role of human capital on economic development has become even more obvious. To chang a large country of human resources into a power country of human capital for China, we should carefully study law and strategies of human capital development. Corporation as the combination of human capital and physical capital, is the main organization for human capital to play its role. The competitive advantage of capital and technology is becoming increasingly smaller, for these resources can be easily imitated by opponents. But human capital lies in the personal skill and knowledge of the employees as well as interpersonal relationships, all of which depend on the background and the path. Therefore human capital that is not easily to be imitated, become the core competitive power of enterprise. Whether from the angle of enterprise development, or from the angle of human capital's research, the study of the relationship between human capital of corporate and company performance is more valuable and meaningful, which provides new and forceful analytical thoughts for many related problems of the enterprise's reform and development.First of all, the paper studies the literature about human capital theory, firm human capital theory, and the effective relationship human capital and firm perfprmance. On that basis, it theoretially explores the relationship between firm human capital and company performance, and forms a deterministic model of firm performance. Through theoretical analysis, we takes China's listed companies as research samples, and have correlative hypotheses, and test the correlation between different human capital and company performance with the method of hierarchical regression analysis. The results show that firm human capital, top executive human capital are significant positively related to firm performance, and technological human capital unsignificantly impacts on firm performance; top executive human capital impacts firm performance through firm human capital's mediation. Independent sample T test confirms that company performance with high human capital stock is superior to company performance with low human capital stock. Finally, this paper makes countermeasure and advice to how to manage human capital and enhance utilization efficiency of hman capital in current situation.