Research On A Model Of Specific Human Capital Investment Structure Between Enterprise&Employee

In recent30years, theory of human capital has been gradually widely noted. Current research on the investment of human capital is focused on pricing, research on the problem of insufficient investment is not enough. specific human capital refers to the knowledge or skills which can be only used in a special enterprise or project. At home, specific human capital investment involves two aspects-enterprise and employees, since their input and out put are mismatching, they lower the intend to investing, this lead to the under-capitalization.Based on the basic theory of specific human capital investment, this dissertation mainly researched the under-capitalization. This dissertation mainly introduced the frontier achievements of Human capital investment’s current situation, investment pricing method and real option theory three aspects. We affirmed the common phenomenon of under-capitalization and it’s primary cause, then extended to the specific human capital pricing. This dissertation made the problem as a starting, with the introducing of the Real Option Pricing Method, we built different models both in enterprise and employee. Putting the input and output of these two parts together, this dissertation also built a model of investment when these two parts investing together. Using the method of mathematical derivation, we theoretically got the answer which can meet investment fairness and maximizing of investment returns simultaneously. Farther more, this dissertation introduced a case on specific human capital investment. Based on the calculation of the very answer aforesaid, this dissertation made sensitivity analysis on the solution, and gave the following recommendations:1) With the increasing amount of investment, the fair investment ratio (investment proportion of employees) is declining, enterprise investment interests becomes more sensitive to changes. The enterprise takes a dominant role in model of investment when enterprise and employees invest together. This is why they should take on more investment.2) With the increasing growth of investment project time limit, the fair investment ratio (investment proportion of employees) is rising, the employees investment interests becomes more sensitive to changes. Employees’should not be unduly concerned about the short-term interests in the investment since their returns will be more observable with longer investment.3) With the increasing risk on investment project, changes on the interests of the employees becomes more sensitive to the fair proportion of investment. In the period of smaller overall investment risk, the enterprise should pay more attention to their own risk, a stitch in time saves nine; In the period of bigger overall investment risk, the enterprise should pay more attention to employees’ investment risk.