Empirical Research On The Executive Human Capital And Business Performance

Real estate industry in China has a special status, its developing track is also different from other industries in the national economy. China’s real estate industry developed in the early 1980’s, only after ten years of development. In the early 1990’s, China’s real estate industry has been developed as the backbone industry in the national development, then a large amount of fund flows to the real estate industry, industry investment was overheated. With the outbreak of the Asian financial crisis in 1997, the real estate market has entered a low period. During this period, China’s real estate industry explored the ways to consummate all kinds of regulations. In 2003, For the first time, the real estate industry was pointed as the backbone industry of national economy in the formal file from State Council. Since then, China’s real estate industry once again usher in rapid development period.From the development history of China’s real estate industry is our country, we can see that the real estate industry is affected strongly by the economic policy, and the development of real estate industry is instability. In this case, the frequent flow of human capital will no doubt brings the risk of uncertainty to the development of the enterprise. For executives, the exclusiveness of the core human capital, the effects of their various aspects quality to the enterprise is more apparent. As a result, in order to reduce the liquidity of the senior executive human capital in the unstable market, most real estate enterprises choose to pay highly. But compare the business performance that brings by the pay’s incentive to the senior executive, the other factors of the executive human capital can also effects the business performance, and this is also worth to pay attention and thinkings. Therefore, in view of the real estate industry, this paper decomposed the senior executive human capital into three main factors, namely the background characteristics, motivation characteristics and governance characteristics, and selected eight variables to measure this three factors to explore that how this factors effect the business performance. Through the empirical test of the data, we get the following conclusions:(1) in the background characteristics, executives’ age can not have a positive impact to the business performance, higher age is not conducive to performance improvement. Senior executives’ education is an important factor affecting the quality of the executive. The different gender in senior management team can bring the ascension of performance;(2) in the excitation characteristics, the remuneration incentive is relatively obvious be reflected, but compared to the remuneration incentive, executives shareholding affect performance higher obviously;(3) in the governance factor, we found that in most Chinese listed real estate enterprises, the chairman or the director can also be the CEO. And some enterprises donnot have enough independent directors as the legal claims. Despite that the impact of the governance characteristics has not been proven, but as the development and perfection of enterprises’ system in China, its effects on business performance will be gradually revealed.From the conclusions of this article, we put forward following suggestions for the senior executives’ selection and inventive for the listed real estate company:(1)make the executive team younger and sexual diversified, improve the education and training system;(2) optimize the executive compensation system, change the single remuneration incentive mechanism, increase executive shareholding and long-term incentive mechanism;(3)consummate the enterprise’s board system, improve the board’s, especially the independent directors’ supervisory function. Listed real estate companies in China to the reference of executive human capital management. I hope that this paper can offer some useful references to the senior executive management for the listed real estate enterprises in China.