Entrepreneurs Value Of Human Capital And Related Incentives To Study

Existence and development of enterprise result as the combining of entrepreneur human capital value, resource endowment the entrepreneur has and external environment condition. Entrepreneur's ability is the fourth leading factor of production following land, workforce, capital, and a key element of determining enterprise's performance. The correct understanding and rational appraisal of entrepreneur's human capital value is one of important prerequisites and ensure, which manage entrepreneur's human capital and motivate, and can improve enterprise operational efficiency and reduce enterprise operating cost. It has important significance in the theoretical and practical fields.Based on the concept of human capital, this paper explains the feasibility and signification of evaluation on entrepreneur's human capital. Then it reviews general approaches of human capital pricing, present the limitation of these approaches. On the basis of comprehensive utilization of theories and methods of management, economics, real options and fuzzy measure methods, entrepreneur's human capital pricing models are established. Finally, a case is analyzed to show how to carry out entrepreneur's human capital pricing in enterprises.Main conclusions derived from the research are:a. Proposed the base of the measuring human capital values theory- Marx labor value theory, the enterprise contract theory, the principal-agent theory and the human capital theory. After the thorough analysis to the entrepreneur human capital value, at present, the cost gathers together or the cash flows the commutation mainly suits the general human capital value measurement, but doesn't suit entrepreneur's human capital, because of its great uncertainty.b. Proposed that entrepreneur's human capital is regard as a special "call option", it has many similar characteristics of real option. When the owner of material capital pays for the human capital, the value is as equal as the option premium. We can account human capital of the entrepreneur by using Black-Scholes Model of option pricing. In this paper we consider the real option rule in a more realistic setting, namely, when the present values of expected cash flows and expected costs are estimated by trapezoidal fuzzy numbers.