A Research Of Human Capital's Participating In The Distribution Of The Firm's Residual Returns

Being based upon the modern economy's new characteristic, through the analyzing of the traditional theory about the distribution of the residual control rights and residual claim of the firm, this paper discusses the residual control rights' distribution among the providers of the firm capital. Then, the paper analyses the theoretical foundation, mode and nature of human capital participating in the distribution of the residual returns. Also, this paper will take the nature of our nation into account, and strives for helping the practice.During the knowledge economy, human capital has more and more effect on the foundation of the core competence ability of the firm. So the firm's development relies on the human capital it owing than before. Essentially, the prime reason is: with the development of the science and technology, people know more about the human capital's core ability in the value creating of firm than before.In short, on the one hand, human capital is the source of the firm value, because of it's own capital nature and then the status of being the element in the value creating. On the other hand, owing to the nature of the property rights of human capital, human capital must depend on the non-human capital at work. So the distribution of the residual control rights is a cooperative game. And the ultimate result of the gaming is that the residual returns and control rights are shared between the human capital and non- human capital, i.e., the co-governance. So from the post-industry economy to the knowledge economy, while the human capital becomes more important in the value creating of the firm than before, it also participate in the distribution of the residual returns of the firm.Based on the forgoing theory, then the paper deals with the main kinds of forms and the corresponding nature, in which the human capital participates in the distribution of the residual returns of the firm. Taking our nation's practice into account, this paper analyses the practice status and obstacles of the ESOPs and ESO in China. Then the paper gives some suggestions and tries to be of help.