Research On Metric Model Of Entrepreneur Human Capital Value

"People are our greatest assets, and the ability to attract and retain them is the key driver of our future success." .As the fundamental source of wealth creation, its measurement is a prerequisite for management, incentive and progress.Based on the concept of HC, this paper explains the feasibility and signification of evaluation on HC. Then it reviews general approaches of HC pricing, present the common limitation of these approaches, i.e. we are still unduly influenced by measurement concepts dating back to the industrial era when physical capital was the primary source of wealth creation. We still regard HC as a material capital with a static view; ignore the uncertainty of HC (especially the HC of entrepreneur). In this paper, we focus on the value in micro level especially the value of entrepreneur. Entrepreneur can be seen as the men who are good at coordinating the scarce resources and making the rational choices, they earn residual income instead of contract income. The HC value of entrepreneur in this thesis can be regard as a special "call option", it has many similar characteristics of real option. When the owner of material capital pays for the HC, the value is as equal as the option premium. We can account Human Capital of the entrepreneur by using Black-Scholes Model of option pricing. However, the pure real option rule characterizes the present value of expected cash flows and the expected costs by a single number, which is not realistic in many cases. In this paper we consider the real option rule in a more realistic setting, namely, when the present values of expected cash flows and expected costs are estimated by trapezoidal fuzzy numbers.After analyzing the entrepreneur HC value of a listed company by this method, we believe that this model of HC Pricing has practical value in enterprise practice. It provides scientific theory and technique way for entrepreneur human capital pricing, and provides vital decision-making support in management, inspiration and M&A etc.It's almost a blank area in academia to price human capital with both option theory and fuzzy method. In this paper, we attempt to combine these approaches in this paper. It's just a beginning of the exploration.