Entrepreneurs Human Capital System

From the perspective of externality of human capital, this paper focused on the entrepreneurial human capital and integrated theories and methodologies from multi-disciplines, including management institutional economy, game theory and so on. This paper aimed to put forward the analyzing framework of stock right realization of entrepreneurial human capital, and fully demonstrated the inner mechanism and specific means of realization of entrepreneurial human capital.The research started with the externality of entrepreneurial human capital. As a special and highest level human capital form, entrepreneurial human capital had become indispensable to the development of both society and economy. The difference between individual yield and social yield gave rise to the externalities of entrepreneurial human capital phenomenally. And just such externalities resulted in the lack of investment and supply of specific entrepreneurial human capital ,and then the ineffectiveness of the innovation and motivation mechanism. In a word, the occurrence of externalities of entrepreneurial human capital and its internalization were the starting point as well as the ending point of theoretical analysis.The stock right realization system of entrepreneurial human capital had materialized the special human capital entrepreneurs possessed into the ownership structure in terms of system level, and manifested the value of entrepreneurial human capital in realization of stock rights. Basically, the income of the entrepreneurial human capital was compensated by the return of stock right, which directly linked the income of the entrepreneurial human capital to the performance of the entrepreneurs, and formed the double effect of incentive and control mechanism. So, the stock right realization system of entrepreneurial human capital was the most effective method among many internalization means. With the context of such system, the individual yield of entrepreneurial human capital almost equal to social yield, which then inspired the entrepreneurs' innovative spirit.This article further analyzed the institutional bases of stock right realization of entrepreneurial human capital deeply. The internal foundation was that entrepreneurial human capital had become a special kind of capital and the external one is the foundation of modern corporation governance. As a special, appropriative kind of human capital, entrepreneurial human capital shared the same essence of physical capital. on one hand ,it was the invested material, without specific investment, the entrepreneurial human capital wouldn't come into being; on the other hand it was the objective to invest on entrepreneurial human capital, its ultimate objective was to gain the largest return of human capital. The modern corporation system was the carrier of the stock right realization system of entrepreneurial human capital, and its largest character lied in using stock right to indicate the rights and obligations of owners of various production elements. Since the human capital had became a kind of capital, the entrepreneur could get the stock property through the value affiliated to the human body and become the residual claimant right of enterprises.As the object of externality, entrepreneurial human resources resulted from theentrepreneurial specific investments, the economic value of entrepreneur rooted in the value of human capital and the specific investment on entrepreneurial human capital deeply. The stock right realization system of entrepreneurial human capital guaranteed the specific investment on entrepreneurial human capital from systematic level. It made the potential entrepreneurs shape a steady income expectation to human capital investment, and then accelerated both the accumulation of entrepreneurial human capital and the transfer from potential entrepreneurs to real ones, that is to say, transfer from entrepreneurial entrepreneurs to managerial entrepreneurs for the sake of decreasing opportunistic cost. Besides, this article discussed the initial assignments of the stock right realization of entrepreneurial human capital in carve-out entrepreneurs together with managers .The goal of analysis on stock right realization system of entrepreneurial human capital was to solve the problem of "how much abilities the entrepreneur would supply", that is the levle of the efforts the entrepreneur put in. Only when the entrepreneurial human capital can grow constantly with the organization, could its theoretic value turn into realistic one , and initially assigned stock right value could be realized on the base of insurance of the business performance. So the essential of the stock right realization system of entrepreneurial human capital lied in the realization of initially assigned stock right value. The efficiency of running entrepreneurial human capital depended on the stock right system within the enterprise.Finally, this article discussed the institutional design of stock right realization of entrepreneurial human capital in terms of the concrete format or the implementation. Regarding to the implementation of the stock right realization system of entrepreneurial human capital, options or future stocks was a better choice, the resulting stock right return depended on the future value the investment on the entrepreneurial human resources instead to connect with the fixed value "storage" of enterprises. It aimed to that the incremental value the entrepreneur created and then solved the problem of the relation between the initial and the following assignment of the stock right realization of entrepreneurial human capital. At the end of this article, we emphasized stock options, especially both the dynamic stock right and incremental rewarding stock share which were innovated in Chinese market.