The Impact And Mechanism Of Human Capital On Firm Value

Human capital plays an important role in building a powerful country and achieving high-quality development.Therefore,exploring the role of human capital in economic development has become the top priority of the research.At present,the academia has carried out a wealth of research on human capital from different perspectives.By combing the existing research and development,it is found that the existing research adopts a relatively single perspective or index to measure human capital,and explores the impact of human capital on economic growth or enterprise performance,but there is no unified conclusion.This paper systematically studies the ability of human capital to create value from the perspectives of human capital cost,human capital comparison psychology and human capital structure,following the idea of “external factors--internal factors--form of expression”.This paper introduces the investment in human capital into the production function,and finds that the investment in human capital affects the output of enterprises.The empirical test shows that the investment in human capital is on the rise,and the value creation of human capital is affected by both cost mechanism and incentive mechanism.At present,the cost mechanism dominates.With the further increase of the proportion of human capital cost,the incentive mechanism will play a leading role.This paper introduces the effort degree of human capital into the production function,and finds that the effort degree of human capital is affected by the average salary of enterprises in the same industry.For all employees,the smaller the comparison psychology is,the more favorable it is for human capital to play a positive value creation function.The comparison psychology has threshold effect on the value creation of human capital.Compared with the management,the influence of comparison psychology of ordinary employees on the value creation of human capital is more significant in non-state-owned enterprises.The similarities and differences of the comparison psychology between ordinary employees and management will also affect the value creation ability of human capital.From the perspective of human capital structure,it is found that the improvement of human capital structure helps to improve enterprise performance.By constructing the index of human capital structure and relative index of human capital structure of the same industry,it is proved that the process of human capital structure upgrading helps to improve the performance of enterprises,and this relationship has nothing to do with the nature of enterprises.Compared with enterprises in the same industry,the higher the level of human capital structure,the more human capital can play a positive role in value creation.From the perspective of comparison psychology,the impact of human capital on stock returns is very limited.Because of the existence of human capital adjustment cost,the quantity change of human capital is negatively correlated with stock returns.The structure of human capital is a risk factor affecting stock returns,but not a pricing factor.The proportion of human capital cost is a pricing factor affecting stock returns,the combination of regression analysis and portfolio analysis proves that the proportion of human capital cost has a positive predictive ability of stock returns;with the help of Fama-Macbeth regression,it is proved that the proportion of human capital cost is a risk factor affecting stock returns,and human capital cost is a risk factor affecting stock returns.Compared with Fama French's five factors,the cost share risk factor is not a redundancy factor.Finally,we find that the ratio of human capital cost to stock return is better explained by the cross-section of GRS model.This paper explores the different effects of human capital on the book value and market value of enterprises through mathematical deduction and empirical test.It systematically analyzes the influence and mechanism of human capital on enterprise value from three angles of "human capital cost human capital--comparison psychology--human capital structure",which provides incremental contribution for human capital to create value.It enriches the relevant research in the field of economic consequences of human capital.This paper explores the impact of human capital on the capital market,enriches the literature on the influencing factors of stock returns,and makes incremental work in the field of asset pricing from the perspective of human capital.This paper focuses on the impact of human capital on enterprise value,and obtains some practical and academic conclusions and views,which has guiding significance to the company's salary formulation,personnel management,and national policies.