Optimization And Synchronization Of Human And Financial Capitals In Privately Owned Enterprses

It has been over 20 years since economic reformation and opening in China. During this period, privately owned enterprises are developing vigorously and playing rising role in economic, communities and culture life. Nevertheless, due to their inner weaknesses and limitations, the development them is quite bumpy one rather than smooth-going one, and characterized as emerging rapidly, expanding disorderly and surviving hardly, especially for medium and small scale enterprises, which take 95% of privately owned enterprises while are only with average life of 3 years. The causes of this phenomenon are good subject for researching, discussing and learning lessons from.This dissertation focuses on the relationship between financial capital and human capital, demonstrates the importance of financial and human capitals, and further explores the way of optimization and synchronization of these two capitals in the operations in privately owned enterprises. Firstly, the dissertation introduces the definition of the enterprises and their development status; secondly, brings in the current situation of human capital in the enterprises, definition, functions and characteristics of human capital as well as several relating theoretic issues; thirdly, discusses the theoretic framework of combining financial and human capital, including comparison between human capital equity and financial capital equity, and accounting theory and methodology to combine human and financial capitals; fourthly, discusses how to optimize and synchronize human and financial capitals in privately owned enterprises; finally, summarizes all above theses.