The Influence Of Human Capital On Business Performance

Since the1980s, the role of human capital in economic development is confirmed by the research. Since then, a lot of scholars research the relationship between human capital and corporate performance. Since Chinese reform and opening up, Chinese economic develop rapidly, particular the manufacturing, achieved the world-class. But these can not conceal the problems in the development of Chinese manufacturing. Firstly we analyze the relationship of the human capital and corporate performance theoretically, and then we list the manufacturing firms to eight specific categories, we analyze the relationship of human and corporate performance. On this basis, we establish a single equation regression model to analyze the relationship between human capital changes and corporate performance changes. Empirical results show:except food and beverage and electronics industries, the other six industries showed a significant positive correlation between human capital and corporate performance. Similarly, except food and beverage and electronics industries, other industries also showed a significant positive correlation between human capital changes and corporate performance. Empirical results show:in most of manufacturing enterprises, human capital is an important factor in the performance of one business, but the food and beverage and electronics industries empirical results do not confirm the theoretical analysis. In this paper, according to food and beverage and electronics industries characteristics and human capital stock structure, we analyze the causes of this situation and made recommendations for targeted measures.The paper falls into five parts:The first part briefly describes the significance of the topic, the researching method, technical line and possible innovations and shortcomings.The second chapter briefly reviews the development of human capital and firm performance theory. On this basis, we focus on the analysis of enterprise performance measurement indicators and business performance. Furthermore we summarize the results of research of relationship between human capital and business performance so that it provides a solid theoretical preparation.The third chapter defines the conception of human capital, corporate performance and other related concept, we analyze how to measure human capital and corporate performance and what factors affect the enterprise human capital and corporate performance. We analyze the mechanism of how enterprise human capital makes on corporate performance. This study constructs a theoretical framework.The fourth chapter select listed manufacturing enterprises as the research object, on the basis of analyzing the status of human capital investment in manufacturing enterprise, we research the relationship between human capital changes and corporate changes respectively.The firth chapter draws conclusion of this study and puts forward recommendation to improve the human capital in order to promote the development of enterprise performance.