The Relationship Between Human Capital, Physical Capital And Financial Performance

Increasingly fierce competition in the 21 st century, with both the knowledge and skills of high-quality talent is fundamental to the core competitiveness of enterprises to master, but the traditional financial management not personnel training and human capital investment brought about by the financial performance into account, that enterprise is the company’s shareholders, the shareholders are enterprises, the pursuit of the most important interests.While ignoring the interests of the owner of human capital. Human capital investment also brings the financial performance for the enterprise, taking into account the interests of the owner of human capital can also provide supervision and restraint, to achieve the balance of the interests of stakeholders. Therefore, how to strengthen the importance of human capital on the basis of material capital, has become a national, regional, and all sectors need to pay attention to the issue.In this paper, the main influence on financial performance factors are reviewed in this paper, according to the related theory to derive hypotheses using 2012-2014 from the information technology industry, agriculture, forestry, animal husbandry and fishery,construction, wholesale retail industry, social services five with a representative industries publicly listed company property provided data for the study sample, according to the selecting principle excluded. A total of 1152 samples. In the construction of financial performance evaluation of multi factor linear model on the basis of, investment in human capital, material capital investment two indicators as explanatory variables into the model,carries on the limits to the related variables, multivariate linear regression was performed on the explanatory variables for the mechanism of the effect of variable, through the observation of significant and illustrate correlation coefficient of variation to examine the significance of explanatory variables, to test the research hypotheses. Finally, it concludes that the empirical results show that H1: human capital and financial performance is positively related; H2:material capital and financial performance is positively correlated; H3: the contribution of human capital to financial performance is greater than the physical capital.Clear the human capital and physical capital are the financial performance of the enterprise play an important role and will be taken into consideration and reverse the traditional concept of financial management. By comparing the influence of human capital and material capital on financial performance in different industries, this part puts forward reasonable suggestions for different industries in China. To change the concept of "capital" in the traditional financial management, to innovate the financial management from the angle of human capital, and to construct the financial management system of the combination ofhuman capital and material capital. The limited resources into larger, local and industry influence on financial performance, to play a greater effectiveness, promote the rational allocation of human capital and material capital, improve the financial management system of enterprises, in order to provide the effective guidance for the development of enterprises.